A surge in welfare fraud involving hidden assets cost British taxpayers a record £1.325 billion during the last financial year, according to figures released on July 5, 2026, amid growing criticism over a sharp decline in criminal prosecutions.
Data uncovered by the Department for Work and Pensions (DWP) shows that losses from claimants concealing cash and investments grew by over a third compared to £982 million in the 2021-22 period.
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Universal Credit claims accounted for the majority of these losses, totaling £1.04 billion in undeclared savings.
The sharp rise in fraud coincides with data revealing that criminal proceedings against suspected fraudsters plummeted by 94 percent, leading to accusations that the government has effectively chosen a policy of "decriminalising" welfare abuse.
Political Reactions
Shadow Work and Pensions Secretary Helen Whately condemned the current administration's enforcement record, warning that the financial leakage threatens systemic integrity.
"Billions of pounds of taxpayers' money is lost to benefit fraud each year.
People are abusing and gaming our welfare state, and this undermines public trust in it," said Helen Whately.
The opposition minister pointed out that administrative shortcomings have persisted across consecutive fiscal periods.
"After two years in office, Labour is failing on welfare reform, failing on welfare savings and so far they have been failing to stop welfare fraud too," she added.
Lee Anderson, the chairman of Reform UK, expressed similar frustrations regarding the oversight of public funds and asserted that the current enforcement mechanism remains inadequate.
