The Department for Work and Pensions (DWP) reported that its employees and contracted staff were responsible for more than £600,000 in benefits-related fraud during the 2025-26 fiscal year. This figure marks a significant decrease from the £1.7 million lost to internal fraud the previous year but contributes to an estimated £4 million stolen by benefits workers over the past five years.

According to the department's latest report, 40 internal investigations into benefits fraud involving staff were conducted in 2025-26, resulting in losses totaling £612,715. Additionally, 16 investigations into non-benefits-related fraud, such as salary and expenses abuse, uncovered further losses of £103,681. The DWP said stringent controls helped reduce the amount of taxpayer money lost to internal theft to less than half the previous year’s total.

Examples of fraudulent activity have included former staffers diverting benefit payments into personal accounts and approving claims for individuals not entitled to assistance. Those found guilty of stealing funds related to employment and support allowance, carer’s allowance, and winter fuel payments have faced prison sentences or suspended sentences.

The DWP employs approximately 85,000 full-time equivalent staff members and emphasized that it takes allegations of fraud "extremely seriously," implementing appropriate measures when such cases arise.

Former pensions minister Baroness Ros Altmann described the continued instances of fraud as “shocking,” underscoring that the theft diverts valuable taxpayer money from vulnerable groups including the unemployed, disabled, and pensioners. The TaxPayers’ Alliance also expressed concern, stating the public would be “appalled” that benefits funds were stolen from within the department tasked with safeguarding them.

Despite the decline in losses, the DWP’s report highlights ongoing challenges in preventing internal fraud and preserving resources intended for those in need of social support.