Some staff have siphoned off benefits money for their own gain. They have also abused the system by ignoring rules to approve claims for people who may not be entitled to benefits, according to an official government report.
In the past, staff have been jailed or received a suspended sentence for stealing employment and support allowance, carer’s allowance and winter fuel payments by diverting the money into their own bank accounts.
Baroness Ros Altmann, a former pensions minister, said: “DWP staff stealing money from benefit claimants is obviously really shocking.
“The department must absolutely crack down on such bad behaviour and criminal charges would seem to be in order.”
Joanna Marchong, from the Taxpayers’ Alliance, said the Government “talks tough on cracking down on benefits fraud” but accused it of “turning a blind eye to wrongdoing in its own ranks”.
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Another staffer “abused customer ID verification processes” and approved benefits payments. They were arrested by police and dismissed.
The Government’s internal fraud team carried out 25 investigations – resulting in losses of £1.7m – into benefits-related fraud among DWP employees and contractors from April 2024 to March 2025. The DWP has 87,000 staff members in total.
More than £6m of taxpayers’ money has been lost due to fraud by DWP staff since 2020, with the 2025 figures being the highest year since then.
Suspended sentence for ESA fraud
In 2023, a woman from Liverpool who worked for the DWP was given a suspended sentence after diverting 20 payments of employment and support allowance – amounting to £7,600 – meant for genuine claimants into her own bank account.
The Crown Prosecution Service said she “abused her position of trust to take this money” and that she had “reimbursed all of the money that she stole and it is clear she regrets what she did”.
Horace Brooks, who worked for outsourcer G4S in a DWP call centre, used some of the money for groceries, trains and lottery tickets, according to the Sunderland Echo.
“People rely on this money and would have expected to receive it but didn’t because of your greed.
The DWP said it takes fraud “extremely seriously” and “when there is evidence of wrongdoing, an employee is subject to disciplinary action and dismissal”.
It added: “Cases are also referred for consideration for criminal prosecution.”
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