MYTHS ABOUT SOCIAL SECURITY 8: “MOST PEOPLE ON BENEFITS ARE FIDDLING THE SYSTEM”

This just isn’t the case.  The amount we lose to benefit fraud is comparatively small and has fallen substantially since the late 1990s. It is also less than the amount we lose to errors by those operating the system.

In 2011-12, overpayment due to fraud and error in respect of DWP benefits is provisionally estimated to have remained at around £3.2bn (2% of total DWP benefit spend), of which £1.1bn was due to fraud (0.8% of benefit spending). Also, an estimated £1.3bn was underpaid in error.