Government staff stole money set aside for some of the most vulnerable people in Britain, triggering anger and renewed scrutiny of the benefits system.
Newly released figures show that civil servants took cash intended for pensioners, carers and disabled claimants from within the Department for Work and Pensions itself
An internal investigation by the department uncovered systematic theft by civil servants who exploited their positions of trust.
The DWP's annual report revealed that 25 separate investigations into employee fraud were concluded during the period, exposing a pattern of abuse within the benefits system.
These revelations have sparked outrage among advocacy groups and former ministers, who describe the thefts as a fundamental breach of public trust affecting those least able to bear such losses.
The investigations exposed fraudulent schemes where staff manipulated identity verification systems to authorise illegitimate payments.
In one instance, an employee bypassed security protocols to approve claims without proper authorisation, leading to their arrest and termination.
Another case involved a worker who validated numerous customer identities and benefit applications despite lacking any supporting documentation. Both individuals faced dismissal and criminal proceedings were initiated against them.
The £1,713,809.18 stolen represents a significant increase from the previous year's losses of £1,003,081 in 2023/24, when the same number of investigations were conducted. One particularly egregious case in that period saw an individual steal £602,484.
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The investigations exposed fraudulent schemes where staff manipulated identity verification systems to authorise illegitimate payments
Beyond benefit fraud, the department also investigated 22 cases of salary and expense fraud, resulting in additional losses of £43,886.76.
Former pensions minister Baroness Ros Altmann expressed shock at the revelations, stating: "DWP staff stealing money from benefit claimants is obviously really shocking."
She acknowledged that whilst most civil servants remain trustworthy, these colleagues would be "horrified to hear some of their colleagues have helped themselves to money needed by disabled or vulnerable claimants."
Dennis Reed from Silver Voices condemned the thefts as "an outrageous betrayal of public trust," emphasising that this white-collar crime directly impacts society's most vulnerable members.
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Dennis Reed from Silver Voices condemned the thefts as "an outrageous betrayal of public trust,
The TaxPayers' Alliance's John O'Connell demanded severe consequences, stating: "Taxpayers will be appalled by this and will expect to see the full force of the law applied to these vile individuals."
He called for lifetime bans from public sector employment, full repayment of stolen funds, and custodial sentences for those convicted.
The DWP responded to the scandal by emphasising its zero-tolerance approach to internal fraud.
A department spokesperson stated: "We take fraud extremely seriously and when there is evidence of wrongdoing, an employee is subject to disciplinary action and dismissal. Cases are also referred for consideration for criminal prosecution."
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The department's annual report confirmed that criminal proceedings have been initiated against multiple employees
Staff found guilty of benefits fraud face immediate termination and are barred from working in any government department for five years.
The department's annual report confirmed that criminal proceedings have been initiated against multiple employees involved in the fraudulent activities.
These internal thefts occurred against a backdrop of wider benefits fraud concerns, with total overpayments through fraud or error reaching £9.5 billion in 2024/25, though this marked a decrease from £9.7 billion the previous year.