HMRC sending two details to DWP in benefits fraud crackdown | Personal Finance | Finance

HMRC is sending the DWP at least two pieces of information lifted from people’s accounts in a crackdown on benefits cheats.

The government is set to put a new Fraud Bill into law aimed at slashing the amount of money lost to benefits fraudsters.

Now, the DWP has revealed two pieces of information from His Majesty’s Revenue and Customs that its new 3,000 strong fraud squad will use to work out if someone has cheated the benefits system.

In the ‘Fighting Fraud in the Welfare System’ report, the government says it will use income data from HMRC to ‘assess their earnings’.

That means people who have been paid through PAYE will have their earnings reported directly to the Department for Work and Pensions to factor into benefits decisions.

Secondly, the DWP says it has created a ‘Joint Counter Fraud Partnership’ with HMRC to ‘collaborate on shared risks’ and to ‘take steps to protect the Exchequer from welfare and tax frauds.

It says it will also report self-employed people’s earnings filed with HMRC to the DWP.

The new law will also give the DWP powers to fine people, even where court action can’t be brought, and give officers the power to make arrests.

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