Benefit fraud - the cost and results

The cost of benefit fraud

It is estimated in 2024, 2.5 per cent of total expenditure or £233.0 million of public money was lost through benefit fraud. This figure is made up of:

• £16 million – Employment and Support Allowance
• £8 million – State Pension Credit
• £5 million – Carer’s Allowance
• £153 million – Universal Credit
• £19 million – Housing Benefit
• £29 million - Personal Independence Payments

Results

We have a team of dedicated fraud investigators who work across Northern Ireland. Our investigators have a variety of tools and powers at their disposal to help them detect benefit fraud. These include:

• the wide use of data matching, both between our own computer systems and with those of other government departments such as HMRC
• the Regulation of Investigatory Powers Act 2000 which allows investigators to conduct covert surveillance on suspected fraudsters
• powers introduced by the Social Security Fraud Act (NI) 2001 which require third parties, such as banks, credit card companies, utility companies and educational establishments, to provide information that could help detect benefit fraud when requested to do so by investigators
• co-operation with colleagues in the Republic of Ireland’s Department of Employment Affairs and Social Protection to reduce the opportunities for and to detect cross border fraud
• the increased use of intelligence and analysis to identify fraud trends which allows us to effectively focus resources on those areas most at risk to fraud
• powers introduced by the Social Security Administration (Northern Ireland) Act 1992 enabling authorised officers to obtain information from employers.

Benefit fraud investigators are highly trained in all aspects of fraud detection and have a nationally-accredited fraud investigation qualification.

In the 12 months from April 2024 to March 2025

• 804 investigations were concluded
• £6.7 million in monetary savings estimated as a result from overpayments of benefits and prevention of future overpayments

During the same period:

• 4 administrative penalties (similar to a fine) were issued
• 47 people were successfully convicted for benefit fraud
• 5 people received a caution

Sentences handed down by the courts can include custodial sentences, suspended prison sentences, probation orders, community service orders and monetary fines. A conviction results in a person having a criminal record.

The cost of customer error

It is estimated in 2024 £74.9 million was lost through customer error.

Customer Compliance and Case Intervention

Customer Compliance Officers

The Department has a team of Customer Compliance Officers who conduct interviews to ensure a customer’s circumstances are up to date and detect and correct overpayments as a result of Customer Error.

During 2024-25, over 2,806 Compliance interviews were undertaken resulting in changes to benefit in 33% of cases and led to an estimated £6.2 million in benefit adjustments, which includes overpaid benefits and future overpayments prevented.

Case Intervention Officers

The Department’s Case Intervention team carry out benefit case reviews using high risk and data matching scans. The UC intervention team carries out high volume, nudge calls designed to identify and correct cases on known and emerging fraud & error risks. In addition, the ESA Intervention teams undertake high volume end-to-end reviews of this legacy benefit, identified through HM Revenue & Customs Real Time Information System. This activity detects low risk customer error and corrects at the earliest opportunity helping to ensure claim accuracy.

In 2024-25, the Case Intervention teams reviewed almost 42,000 cases, leading to estimated saving of £33 million. This includes work carried out by the NI Housing Executive and the Department’s Pension Credit who use General Matching Scans to target error within their respective benefits. It also includes work undertaken by the Benefit Security Division Enhanced Review Team who conduct prevent and detect activity based on known and emerging risks.

Repayment

In all cases, customers are required to repay the amount of money they received incorrectly.

Financial investigations

The Financial Investigation Unit was established in 2005. It uses powers granted under the Proceeds of Crime Act (POCA) 2002 to trace and recover money by way of Confiscation Orders in serious benefit fraud cases. In the 12 month period April 2024 to March 2025 Financial Investigation Unit was successful in obtaining confiscation orders to the value of £100,900, and voluntary payments totalling £165,400.

Fraud costs

It is your money that is being stolen and with your help it can be prevented reduced and recovered.

Remember – 'beating fraud is everyone’s business'

Help us to protect your money

If you have any information:

• Call the Northern Ireland Fraud Hotline on 0800 975 6050
• Textphone 028 9055 6991 (not a free call)
• Report Benefit Fraud online