Government employees have reportedly stolen benefits cash meant for pensioners, carers and disabled people. Staff in the Department for Work and Pensions (DWP) have siphoned off money for their own gain and ignored rules in place to ensure those not entitled to benefits don’t receive them, the i Paper reports. The revelation that employees in charge of caring for Britain’s most vulnerable people were responsible for the loss of £1.7 million between 2024 and 2025 could deal a blow to Labour’s stated aim of cracking down on “benefit cheats” – some of whom appear to be on the Civil Service payroll.
“DWP staff stealing money from benefits claimants is obviously really shocking,” former pensions minister Baroness Ros Altmann said. “Unfortunately, it seems there will always be a few bad apples, but overall I would think that our civil service staff are trustworthy and will also be horrified to hear some of their colleagues have helped themselves to money needed by disabled or vulnerable claimants.”
She told the i Paper: “The department must absolutely crack down on such bad behaviour and crimincal charges would seem to be in order.”
The Taxpayers’ Alliance think-tank also called for action following the news, warning of public outcry over “fraud festering within the very department meant to safeguard public money”.
Investigations campaign manager Joanna Marchong accused the Government of “talking tough on cracking down on benefits fraud” but “turning a blind eye to wrongdoing in its own ranks”.
According to the DWP’s annual report for 2024-25, one employee, who has been dismissed and is the subject of a criminal investigation, approved multiple benefit claims “with no evidence to support them”.
Another civil servant “abused customer ID verification processes” while verifying benefits claims and was also sacked and arrested by police.
The Government’s internal fraud team conducted 25 investigations into benefits-related fraud among DWP employees and contractors between April 2024 and March 2025, the report states, with total losses of £1.7 million. Over 87,000 staff are thought to be currently employed by the department.
A further £5.8 million was lost to benefits claimants cheating the system over the last year, according to the report.
While the new figure represents the most money lost to fraud by DWP staff since 2020, the issue is not a new one – with the disappearance of over £6 million of taxpayer money linked to internal wrongdoing over the last five years.
The DWP said it is cooperating with ongoing criminal proceedings against former staff members. A spokesperson also said the department takes fraud “extremely seriously” and “when there is evidence of wrongdoing, an employee is subject to disciplinary action and dismissed”.
“Cases are also referred for consideration for criminal prosecution,” they added.