Biggest fraud crackdown in a generation

Welfare fraudsters who cheated the taxpayer out of £7 billion last year could be banned from driving if they fail to reimburse the public and repay their debt

  • Benefit cheats to be stripped of driving licences under new plans in government’s biggest fraud crackdown in a generation
  • New Public Authorities (Fraud, Error & Recovery) Bill introduces measures to be tough on criminals and fairer to taxpayers.
  • The Bill alone is expected to save the Department £1.5 billion over the next five years, and forms part of wider government plans to save a total of £8.6 billion over 5 years in the biggest welfare fraud and error budget package in recent history, as part of Plan for Change

As part of new legislation set to be introduced in Parliament today to deliver the biggest fraud crackdown in a generation, benefit cheats could be disqualified from driving for periods of up to two years if they refuse all opportunities to repay the money they owe.

The Department or Work and Pensions (DWP) will be able to apply to the court with the justification to suspend fraudsters from driving, provided the debts is £1,000 or over and frequent requests to repay the debt have been ignored.

DWP’s serious organised crime authorised investigators are also expected to be handed powers to apply to a court for search warrants. It means that for the first time, they will be able to support Police and search premises and seize items such as computers and smartphones as evidence against fraudsters.

The Bill alone is expected to save the Department £1.5 billion over the next five years, and forms part of wider government plans to save a total of £4.3 billion in 2029/30 in the biggest welfare fraud and error budget package in recent history.

 The new legislation is being brought forward after the government inherited a broken welfare system, with fraud and error in the social security system currently costing the taxpayer almost £10 billion a year and, since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to the money.

This Bill comes as the government seeks to bring forward measures to overhaul the health and disability welfare system as part of its Plan for Change, so it better supports people to enter and remain in work and to tackle the spiralling welfare bill – with new proposals for reforming the health and disability benefits system expected in the Spring.

This legislation also delivers on the government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the government’s commitment to not tolerate fraud, error or waste anywhere in public services, including the social security system. 

The measures in the Bill will be underpinned by a principle of fairness and proportionality – the priority is always to negotiate affordable and sustainable repayment plans, with these powers to be used as a last resort. 

Secretary of State for Work and Pensions, Liz Kendall, said: “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money.

“This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.

“People need to have confidence the Government is opening all available doors to tackle fraud and eliminate waste, as we continue the most ambitious programme for government in a generation – with a laser-like focus on outcomes which will make the biggest difference to their lives as part of our Plan for Change.”

DWP will also have the power to recover money directly from bank accounts of those not on benefits or in PAYE employment who owe the Department and refuse to pay up, despite having the means to do so. The Bill will allow DWP to request bank statements to prove these debtors have sufficient funds to fairly repay what they owe. However, DWP will not have direct access to people’s bank accounts.

Modernising the approach to catching fraudsters, preventing overpayments and introducing new safeguards to further protect vulnerable customers means the DWP can keep pace with the sophisticated nature of fraud, while also ensuring law-abiding customers get the right benefits – preventing them from falling further into debt.

The Bill will also include safeguarding measures to protect vulnerable customers. Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms, to monitor these new powers.

The government will also bring forward Codes of Practice which will be consulted on during the passage of the Bill to provide further assurance on the safe use of the powers, and we have a clearly defined scope and clear limitations for the use of all the powers including the right to appeal the decision.

The Cabinet Office’s Public Sector Fraud Authority will also be given more powers under the legislation being introduced in Parliament today.

A brand-new measure will see the time limit for civil claims against Covid fraud doubled from six to twelve years. This step change in the ability to fight fraud committed during the pandemic will give the Covid Corruption Commissioner and the Public Sector Fraud Authority more time to investigate complex cases and apply their new powers retrospectively – including the ability to raid properties and retrieve money from Covid fraudsters’ bank accounts.

Georgia Gould, Minister in the Cabinet Office, said: “During the pandemic, when people and businesses needed government support the most, some people stole public money for their own personal gain.

“This legislation gives the government tough new powers that can be used to investigate and recover money stolen from the public during covid and doubles the time we have to bring fraudsters to justice.”

Taken together, these measures show the government’s commitment to taking a responsible approach to public finances which is required for long-term economic growth, in order to deliver for working people up and down the country.

Additional Information

The new law will deliver on this government’s manifesto commitment to safeguard taxpayers’ money – ensuring every pound is spent wisely and effectively:  

  • New powers of search and seizure – so DWP can control investigations into criminal gangs defrauding the taxpayer 
  • Allowing DWP to recover debts from individuals no longer on benefits and not in PAYE employment who can pay money back but have avoided doing so. 
  • New requirements for banks and building societies to flag where there is an indication that there may be a breach of eligibility rules for benefits – preventing debts accruing 
  • All the powers will include strong safeguards to ensure they are only used appropriately and proportionately – including new inspection and reporting mechanisms. 
  • We have a clearly defined scope and clear limitations for the use of all the powers we are introducing, and our staff will be trained to the highest possible standards. 

The measures in this Bill will enable the PSFA to:

  • reduce fraud against the public sector by using its expertise to take action on behalf of other departments, against those who attack the public sector.
  • better detect and prevent incorrect payments across the public sector through new information gathering and sharing powers.
  • Use strong non-criminal sanctions and civil penalties to provide an alternative to criminal prosecution and to deter fraud 
  • improve the government’s ability to recover public money, through new debt recovery and enforcement powers. 
  • Use new powers of entry, search and seizure to reduce the burdens on the police in the most serious criminal investigations.
  • improve fraud management in future emergencies by creating specialist time limited powers to be used in crisis management situations – building on lessons learned during COVID-19.

The PSFA will implement a ‘test and learn’ approach when utilising these powers, piloting different approaches and expertise to find the best way to tackle public sector fraud.

Scottish Government: Support with energy costs

Statement to the Scottish Parliament about support with fuel costs in winter

More than 456,000 people are due to receive Winter Heating Payments totalling £26.8 million this winter, Social Justice Secretary Shirley-Anne Somerville will tell MSPs today (Tuesday 14th Jan).

Updating the Scottish Parliament on support with fuel costs for people on low incomes, Ms Somerville will confirm the Scottish Government is forecast to invest more than £65 million in our three Winter Heating Benefits this year, providing vital support to more than 630,000 people with their energy bills.

The Winter Heating Payment guarantees everyone eligible will receive a payment every year, rather than the UK Government approach of requiring a sustained period of cold weather, which previously resulted in no Cold Weather Payments being made to many low income households across Scotland.

The Scottish Government benefit, which replaced the UK Government’s Cold Weather Payment, provides a targeted, reliable and guaranteed annual payment of £58.75 to support people on low incomes with the cost of heating over the winter months.

The UK Government’s Cold Weather Payment previously provided £25 per cold spell only when the average of the mean daily temperature recorded was equal to or below zero degrees for seven consecutive days.

The Child Winter Heating Payment provides help to disabled children and young people and their families who have higher energy needs due to a disability or a health condition.

This benefit is not available elsewhere in the UK. So far 37,000 payments have issued totalling £9.3 million so far this year, to support more than 33,000 children, young people and their families.

Pension Age Winter Heating Payment helps people of pension age who receive certain benefits to pay their heating bills, and is providing payments of £200 or £300 to people in receipt of a qualifying benefit, depending on their age, this year.

For next year, the Scottish Government will bring forward regulations to ensure every pensioner household receives at least £100 – support which is also not available anywhere else in the UK.

Ms Somerville said: “When we asked people they told us they overwhelmingly supported the removal of the ‘cold spell’ requirement for the UK Government’s Cold Weather Payment.

“Our Winter Heating Payment breaks the link with arbitrarily-defined weather dependency and provides financial support, no matter the weather. This means low-income households will automatically be paid and  do not have the uncertainty of waiting for weather readings for seven consecutive days before receiving a payment.

“More than 453,000 people got Winter Heating Payments last winter from the Scottish Government thanks to an investment of £25 million. This winter we will invest even more – £26.8 million – for Winter Heating Payment.

“That more than triples the £8.5 million provided on average by the Department for Work and Pensions in each of the last seven years prior to the introduction of our Payment.

“Our Winter Heating Payment is a very clear example of how this Scottish Government is doing more to support the people of Scotland throughout the long, cold winter months.”

Social Security Scotland: Payment Dates this week

Payments are usually made early if they’re due on a bank holiday and it’s useful that those in receipt of benefits are aware of when payments will be made. 

Upcoming payment date changes are listed below: 

Expected payment dateActual payment date
Wednesday 1 January 2025Tuesday 31 December 2024
Thursday 2 January 2025Tuesday 31 December 2024

Granton Information Centre delighted with feedback survey response

Thanks to everyone who has given us feedback so far by completing our survey!

GIC are passionate about providing the best possible service to our clients and we are delighted with the results and the many positive comments we’ve received since April:

December Carer’s Allowance Supplement paid today

Eligible carers will receive a payment of £288.60 today (Friday 6 December).

Carer’s Allowance Supplement is unique to Scotland and recognises the important contribution of unpaid carers in Scotland.

The next payment of £288.60 will be made on Friday 6 December to eligible carers who were getting Carer Support Payment from Social Security Scotland or Carer’s Allowance from the Department for Work and Pensions (DWP) on 7 October 2024.

Latest official statistics show that 88,615 carers received Carer’s Allowance Supplement in June 2024.

One mum, and carer, who received the payment, said: “As a carer to two disabled kids it comes in handy, even just to treat myself to some new clothes. Thank you for thinking of the hard-working carers who do a tremendous amount for whomever they care for.”

Carer’s Allowance Supplement is paid into the same bank account as the recipient’s Carer Support Payment or Carer’s Allowance. If someone thinks they are eligible, but does not receive the payment by Monday 16 December, they should get in touch by calling Social Security Scotland free on 0800 182 2222.

To get Carer’s Allowance Supplement, you must live in Scotland or have a genuine and sufficient link to Scotland. For more information on our benefits for carers, visit Carers – mygov.scot

Information on other support for carers is available at Help if you’re a carer – mygov.scot

Look after a loved one? £288 should hit your bank account tomorrow

There are around 80,000 unpaid carers in Scotland. Tomorrow, many of these Scots will see £288.60 deposited into their bank accounts. This payment is part of the Carer’s Allowance Supplement, and up to 30,000 carers who were not previously eligible could now be amongst those entitled to the support, thanks to crucial changes to the Scottish system which took place just last month.

To help carers navigate the complex system correctly, Suzanne Bourne – Head of Carer Support at the UK’s largest community of unpaid carers, Mobilise – explains more. Her advice below covers what the Carer’s Allowance Supplement is, how to check if you’re eligible and what to do if you think you’ve missed out on support you’re entitled to: 

What is Carer’s Allowance Supplement?

Carer’s Allowance Supplement is worth £577.20 in total, and is split into two twice-yearly payments of £288.60. Eligible carers should have received the first of these payments on 7 June 2024. The second payment is due on Friday 6 December 2024.

The supplement isn’t new. But rules surrounding a different benefit, which determines whether or not people receive the supplement, changed just last month. 

In November, the Carer Support Payment was introduced to replace Carer’s Allowance for carers living in Scotland. Carers who receive the Carer Support Payment are automatically paid the £288.60 Carer’s Allowance Supplement.

And, thanks to the recent rule changes, both forms of financial support are now available to many more of Scotland’s 30,000 young carers

Who is eligible? 

Carers who received either Carer’s Allowance or Carer Support Payment on 7th October should automatically get the £288.60 supplement on 6th December. 

To be eligible for the Carer Support Payment you must be:

  • Aged 16 or over
  • Providing care for over 35 hours per week to someone who receives disability benefits
  • Earning less than £151 a week 
  • Living in Scotland
  • Students must be in full-time education, and meet additional criteria (find out more here)

If you’re due to receive the supplement, you’ll get a letter from Social Security Scotland before the payment is made. If you do not get a letter or payment by 16 December 2024 but believe you are eligible, contact Social Security Scotland.

Who needs to be careful?

In particular, given the recent rule changes, young carers should seek help from Social Security Scotland if they believe they are missing out on vital financial support which they are entitled to.

All carers should also be aware of the upper earnings limit trip hazards. The threshold for Carer’s Allowance – which is still in place for carers in England and Wales – increased to £181 a week following the recent Budget. For Scottish carers, the earnings limit is still £151 a week. 

So make sure your earnings are within the limit where you live, and update Social Security Scotland if your situation changes. Especially since this threshold is the source of the ongoing ‘overpayments’ scandal, whereby hardworking carers are having to pay back their benefits. 

How can I check if I’m eligible?

If you’re unsure whether you meet the criteria for Carer Support Payment – and, in-turn, the  Carer’s Allowance Supplement – you can check using the government’s free eligibility checker tool.

How can I apply?

Applications for Carer Support Payment are now open Scotland-wide. If you’re eligible you can apply online, by phone, by post, or in-person. See the government’s website for full details. 

Receiving Carer Support Payment Carer’s Allowance Supplement may affect any other benefits you receive, or the benefits of the person you look after. So it’s important to be aware and seek additional guidance from Social Security Scotland before you apply if you are concerned. 

What additional support is available? 

There are a number of other forms of financial support on offer for those who look after loved ones. Some of these benefits can be claimed instead of the Carer Support Payment and supplement, for those not eligible, and some can be claimed in addition. These benefits include: 

  • Young Carer Grant – Scottish carers aged 16, 17 or 18 can apply for this yearly payment of £383.75 if they provide care for an average of 16 hours per week. Find more details and apply via the Scottish government’s website 
  • Carer’s Credit – Anyone that provides 20 hours of unpaid care a week is eligible for this National Insurance credit, which helps individuals qualify for state pensions later on. Check whether you’re eligible using this credit checker tool
  • Carer’s Element – If you’re on a low income and receiving Universal Credit, you may be entitled to an additional £185.86 a month. The Universal Credit team can advise you on this
  • Carer’s Support Plan – By requesting an assessment from your local council, you can find out if you’re eligible for any additional, one-off, direct payments to help you manage the impact of caregiving. Find out more here
  • Pension Credit – The Carer Addition (or ‘Carer Premium’) – If you’re aged 65 or over, and on a low income, you may also be entitled to credit which is separate from your State Pension to help with living costs. Find out more via the government’s website
  • Grants from local councils – Grants to help with caring costs can also be made by councils. Check what support is available to you using this grant search tool
  • Council tax discounts – If you’re on a low income and claiming a benefit, you may be eligible for reduced council tax. Apply via the government’s website 
  • Heating benefits – It’s also worth checking if you’re eligible for the Warm Home Discount, Winter Fuel Payment, or the Cold Weather Payment. Find out more here
  • Discounts – There are a number of discounts available exclusively to people who look after loved ones, including discounted train tickets, days out (see a list of attractions that apply here), and even free cinema tickets (with a CEA card)

For more advice and guidance on the financial support available to unpaid carers, you can find detailed information or speak to a carer support expert via the Mobilise website.

Social Security Bill passed

Legislation will protect people claiming benefits against inflation

Payments to people in receipt of benefits will be protected from inflation after the Scottish Parliament passed the Social Security (Amendment) (Scotland) Bill yesterday.

The new Act places a legal obligation on Scottish Ministers to annually increase all benefits delivered under the Social Security (Scotland) Act 2018 in line with inflation. This action will help to protect the real terms value of payments such as the Best Start Grants and winter heating payments as prices rise in the economy.

The legislation will also enhance the rights of Social Security Scotland clients in a number of ways:

  • A right to late re-determinations and appeals in exceptional circumstances
  • The right to withdraw a request for redetermination
  • The right to challenge a decision that someone is liable in a situation where an overpayment has been made

It  will also continue to enhance the design of the system, maximising choice for those who use it while delivering good value for money.

Social Justice Secretary Shirley-Anne Somerville said: “This legislation will protect people in receipt of benefits at a time when many are feeling additional pressures due to the cost of living crisis.

“It is part of our commitment to continually improve the Scottish social security system in ways which put the needs of those who require assistance first.

“The law will help make the social security system more efficient and effective, contributing to our mission to tackle poverty and protect people from harm.

“The measures it contains advance equality and non-discrimination and ensure the system is efficient and delivers value for money.”

The Social Security (Amendment) (Scotland) Bill

Social Security Scotland: Carer Support Payment information

As of 4 November, Carer Support Payment is available in every local authority area in Scotland. We introduced the payment in phases from November 2023 and are delighted it is now available across Scotland.  

Carer Support Payment is money to help unpaid carers providing 35 or more hours of care a week to someone who gets disability benefits. The payment is £81.90 per week. 

Carers in Scotland who already get Carer’s Allowance will have their benefits automatically transferred to Carer Support Payment with no gap in entitlement. Social Security Scotland will write to people in advance to let them know that their award will be moving. 

We are planning an awareness-raising campaign in early 2025 to support take-up of the benefit . 
 
More information on eligibility and how to apply is available at mygov.scot/carer-support-payment.  

Free stakeholder resources are available on our website to share with your networks and help us promote the payment to people who may be eligible. Please download them and share across your networks and channels. 

The next Carer’s Allowance Supplement payment of £288.60 will be paid on Friday 6 December to eligible carers who were paid Carer Support Payment or Carer’s Allowance on 7 October 2024. 

We will write to eligible carers in advance, so they know when to expect the payment. If carers have not received the payment or heard from us by 16 December 2024, they should call us free on 0800 182 2222. 

 More information is available on our website

Families across Scotland benefit from over £1 billion in social security support

New figures show over £1 billion paid out to help end child poverty

New figures show that the Scottish Government’s five family payments have reached a landmark figure since their launch, paying over £1billion to families across Scotland to help end child poverty.

The latest statistics released from Social Security Scotland reveal that between February 2021 and September 2024 £905.6 million has been paid out in Scottish Child Payment and a further £172.3 million since the launch of Best Start Grant and Best Start Foods.

The combined value of this vital financial support is over £1 billion and has been delivered by Social Security Scotland through its five family payments; Scottish Child PaymentBest Start Grant Pregnancy and Baby PaymentBest Start Grant Early Learning PaymentBest Start Grant School Age PaymentBest Start Foods.

The payments support children throughout key stages from pregnancy then birth, to starting school and on to age 16.

Best Start Grant Early Learning Payment, Best Start Grant School Age Payment and the ‘game changing’ Scottish Child Payment are only available in Scotland.

Cabinet Secretary for Social Justice, Shirley-Anne Summerville said: “Ending child poverty is the Scottish Government’s single greatest priority. At a time when families are struggling with the ongoing cost-of-living crisis, we have been delivering payments which offer vital to support families and children at key stages in their lives.

“There is help during pregnancy and in the months after a baby is born; help paying for early learning; help with that all important first day at school and help with buying the healthy, nutritious food that is vital for developing children.

“Then there is the unique Scottish Child Payment. More than 325,000 children and young people were benefitting from the payment by the end of September 2024. Our modelling projects Scottish Child Payment will keep 60,000 children out of relative poverty in 2024-25.”

 Background

Link to Scottish Child Payment high level statistics to 30 September 2024: https://www.socialsecurity.gov.scot/reporting/publications/scottish-child-payment-high-level-statistics-to-30-september-2024

Link to Best Start Food high level statistics to 30 September 2024: https://www.socialsecurity.gov.scot/reporting/publications/best-start-grant-and-best-start-foods-high-level-statistics-to-30-september-2024

Payment Launch Dates:

  • Scottish Child Payment: 15 February 2021
  • Best Start Grants: 10 December 2018
  • Best Start Foods: 15 August 2019

Payments available for families include:

Parents, carers and guardians can get more information at mygov.scot/fivefamilypayments or by calling free on 0800 182 2222.

Carers Rights Day: Carers urged to check for financial help

Thousands of unpaid carers could be missing out

This Carers Rights Day (Thursday 21 November 2024), unpaid carers across the country are being encouraged to check their eligibility for financial support from Social Security Scotland.

It is estimated that there are around 800,000 unpaid carers, including 30,000 under the age of 18, providing care for a family member, friend or neighbour in Scotland.

Research also suggests that many do not see themselves as a carer, meaning they do not take up support they are entitled to.

There are three payments delivered by Social Security Scotland dedicated to supporting unpaid carers.

Carer Support Payment is replacing Carer’s Allowance in Scotland and is now available for new applications Scotland-wide.

Young Carer Grant and Carer’s Allowance Supplement are only available in Scotland. There has been a 26% increase in Young Carer Grant applications from those aged 16-18 in the 12 months to September 2024 compared to the same period the previous year.

Cabinet Secretary for Social Justice, Shirley-Anne Somerville said: “The Scottish Government has supported around 164,000 unpaid carers through social security payments since 2018. We understand their important role and that many may be juggling caring with work, study or family commitments.

“That is why we’ve been working closely with carers and organisations that represent them, to develop a better social security system in Scotland. This includes improving the application process and providing two payments that are only available for carers here in Scotland.

“This Carers Rights Day, I urge everyone who carries out a caring role to find out more about the financial help available. And if you know an unpaid carer, whether a student, work colleague, friend or even someone caring for you, let them know support is available.”

As part of Carers Rights Day, Social Security Scotland has organised a pop-up event at South Lanarkshire College to help raise awareness amongst students about the financial support available and to support them with applying.

Head of Student Services, Rose Harkness, said: “South Lanarkshire College proudly support carers of all ages who provide unpaid assistance to loved ones facing illness, disability, mental health challenges, or addiction.

“Our inclusive environment enables carers to achieve qualifications without barriers through tailored guidance, course and funding advice, and support with completing applications.

“Working in partnership with Social Security Scotland has encouraged more of our carers to check eligibility and apply for funding to help in their caring role.  We are committed to empowering carers for both academic success and personal growth.”

To find out more about the financial support available for unpaid carers visit:  mygov.scot/browse/benefits/carers

Background

  • Carer Support Payment is available to people providing care for 35 hours or more a week, earning a maximum weekly income of £151 after tax, National Insurance and expenses, to someone who receives disability benefits. It replaces Carer’s Allowance in Scotland and is a payment of £81.90 per week. Carer Support Payment is also available to some carers in education. This includes full-time students aged 20 or over and students under 20 in advanced or higher education. Students aged 16-19 in non-advanced education e.g. studying for National Certificates, Highers and Advanced Highers, may also be eligible. Carers in Scotland who are already receiving Carer’s Allowance don’t need to apply for Carer Support Payment. Their benefits will be automatically transferred. This process is due to complete in spring 2025.
  • Young Carer Grant is a yearly payment of £383.75 and is available for carers age 16, 17 or 18 who provide support for an average of 16 hours a week to someone receiving certain benefits. The money can be spent on whatever the young person wants.  
  • Carer’s Allowance Supplement is an automatic payment made twice a year to unpaid carers receiving Carer Support Payment from Social Security Scotland or Carer’s Allowance from the Department for Work and Pensions (DWP). The next payment of £288.60 will be paid on Friday 6 December for those who were paid Carer Support Payment or Carer’s Allowance on 7 October 2024.  The Scottish Government has committed to replace six monthly lump sum Carer’s Allowance Supplement payments with more regular payments alongside Carer Support Payment once case transfer is complete.
  • Information on other support for carers is available at Help if you’re a carer – mygov.scot