Liz Kendall speaking at a podium with the words ‘THE £8BN BENEFIT FRAUD LIE - EXPOSED’ superimposed in bold tabloid-style text

Exposed: The £8 billion lie – Labour is misleading you on benefit fraud

Fraud in the benefit system is falling – not rising, despite what Work and Pensions Secretary Liz Kendall might want you to believe.

That is the message in the annual Fraud and Error in the Benefit System report, published by the Department for Work and Pensions.

The findings belie the tired political pantomime of scroungers v strivers, yet the government continues to push a narrative that implies benefit fraud is out of control, using disability benefits like PIP as a political football.

Here’s what the data actually says — and what they don’t want you to focus on.

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Fraud falling, errors rising – and it’s mostly on the DWP

Across the entire benefit system, overpayments totalled £9.5 billion (3.3 per cent) between April 2024 and April 2025 — a slight decrease from the previous year’s £9.7 billion.

Fraud accounted for £6.5 billion (2.2 per cent) of that figure — down from £7.3 billion (2.7 per cent).

Overpayments due to claimant error were £2 billion, and DWP error clocked in at £1 billion.

Meanwhile, £1.1 billion wasunderpaidto claimants, mostly due to DWP failures.

In other words, for every headline about “benefit cheats,” there are countless families, pensioners and disabled people being short-changed or stressed by a flawed system that wrongly blames them.

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PIP fraud: still negligible

Disability benefit fraud has been a favourite bogeyman for politicians. But the data once again reveals the truth.

  • Total PIP overpayments: £330 million (1.3 per cent)

  • Of that, only £100 million was fraud – that’s just 0.4 per cent of all claimants.

  • Overpayments from claimant error were £190 million (0.7 per cent).

  • £40 million came from the DWP’s own mistakes.

  • PIP underpayments were £40 million (0.2 per cent), all due to DWP wrongly reducing awards.

Significantly, 60 per cent of overpayments were because claimants didn’t know they needed to report a change in health – a failure of communication, not criminal intent.

So why are politicians obsessed with this tiny fraction of fraud, while ignoring the hundreds of millions in underpayments?

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The £8 billion lie

Enter Liz Kendall, Work and Pensions Secretary, who recently cited £8 billion lost to benefit fraud — a figure that is not borne out by the new DWP report. In fact, fraud across all benefits totals £6.5 billion, and that figure is falling.

To be clear: there is no £8 billion PIP fraud, no £8 billion fraud among disabled people. Liz Kendall’s statement is not just misleading — it’s demonstrably false.

This is not government. It is propaganda.

The real “welfare cheats” aren’t the poor

This whole charade ignores a larger truth: the biggest losses to the public purse don’t come from welfare fraudthey come from tax avoidance and evasion, largely by corporations and the wealthy.

Yet Labour seems as disinterested in chasing that money as the former Tory government.

Why? Because it’s politically easier to punch down — to scapegoat the poor, the sick, and the disabled — than to hold billionaires to account.

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Disabled people deserve truth, not smears

This report should empower people to push back. The facts speak loudly:

  • PIP fraud is just 0.4 per cent.

  • Most overpayments are errors, not scams.

  • Disabled people are more likely to be underpaid than to defraud the system.

It’s time to stop the spin, stop the scapegoating, and start holding those in power accountable.


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