Oral Ministerial Statement by Gordon Lyons MLA Minister for Communities

Date published:
9 February 2026

Mr Speaker, 

My mission is clear; to deliver a welfare system that is fair, transparent and focused on those who need it most.

In February last year I stood in this chamber and I was categorical then in saying welfare fraud is not just a financial issue, it is a moral one. That remains true today.

Fraud is not a victimless crime. 

When individuals cheat the system they are taking support from those who need it most.

In 2024, 3.7% of benefit expenditure, a staggering £350.3million, was lost due to fraud and error. 

At this time of significant budget constraint, we must call out benefit fraud ensuring that public money is directed to our key services. 

Not to criminals. 

In an early and visible signal of my intent, last April I re-introduced the Departmental practice of naming those who have been found guilty in the Courts. 

Since doing so, my Department has seen anonymous fraud referrals from members of the public rise to 9,857 at the end of January 2026 compared with a total year end figure of 6,353 for 2024/25. It is clear that as a result of my leadership on these issues, benefit fraud and error is now clearly on the public agenda.

To the annoyance of some in this chamber, I will keep highlighting this issue and keep it a priority for the department. 

I make no apology for doing that because these cases show shocking levels of dishonesty.  Like the case of the 38-year-old woman who lied about her living arrangements to fraudulently claim over £76,000.

Or the 29-year-old man who gave false information about his living arrangements, disability and savings to falsely claim over £43,000.

And some fraudsters don’t even live here.  Like the person whose £35,000 fraud funded a life in the Philippines. 

I have taken away the shield of anonymity from those who steal from all of us and lifted the silence on the corrosive impact of these fraudulent activities.

And the response from the public to shining a light on these stories has been overwhelmingly positive.

This has fuelled my determination not just to root out those committing fraud, but also to step up our efforts to deter anyone who may be considering going down this path. 

By end of 31 December 2025, 497 criminal investigations into benefit fraud had been concluded. 

For the period 1^st April 2025-6^th February 2026, 57 prosecutions had been made as a direct result of the relentless investigatory work of my Department.

In 2025/26, £16.7million will be spent on bearing down on fraud and error through existing counter-fraud activity across my Department. 

The Department also undertakes debt recovery work to identify and recover overpayments, whether caused by fraud, error or changes in circumstances, and manages repayment in a fair and proportionate way.

Up until 31 December 2025, this had resulted in a total recovery of £638,636.

In the Department, we continually assess the value and impact of fraud and error work. 

This includes routine monitoring of operational performance, recovery levels, and wider preventative activity. The Department’s Benefit Security teams, who lead on all counter fraud activity, also undertake quarterly reviews to ensure resources are focused on areas of highest risk.

It’s important to be clear that fraud is a complex area where fraud investigation is only one approach. We have dedicated risk teams and proactive interventions that help us prevent and resolve issues at the earliest possible stage.

To give examples – my Department reviewed over 16,000 Universal Credit cases up to the end December 2025, correcting 2072 UC claims and saving the Department over £10.6m.

Over 5,000 ESA cases were reviewed within the same period, correcting 677 ESA claims and saving the Department £2.5m.

As a result of compliance work within the Department, 2654 cases were concluded up to 31 December 2025 resulting in savings of £7.1m.

We’re seeing earlier identification of suspicious claims, better targeting of high‑risk areas, and more effective investigation outcomes.

It remains my absolute priority to protect public money and ensure that benefits go to the people who are genuinely entitled.

But we can’t be complacent and we must stay ahead of the fraudsters.

This is why, last year, I commissioned an in-depth internal analysis to critically assess current interventions and make recommendations on robust measures to reduce levels of fraud and error.

Today I pay tribute to the Task and Finish Group for their work. In developing its findings, the Group drew on internal expertise, external insights and robust data analysis supported by intensive stakeholder engagement and collaboration. 

It has given a level of assurance that existing measures to reduce fraud and error are effective and commensurate.

But – there is no doubt that the historic underfunding of the Department in this area has significantly constrained our ability to scale our fraud and error activity. The £16.7m allocated to tackle benefit fraud and error in 2025/26 is insufficient as the scale and complexity of the challenge before us is rising.

Current allocations mean that we cannot maintain parity with the Department for Work and Pensions and bear down on fraud and error to the extent we know we need to.

.  We cannot stand still and so today I am committing to accept the recommendations of the Task and Finish Report in driving forward work across four key areas:

The first of these will be to

1. Enhance and expand current fraud and error activities 

• We will strengthen the validation of claimants’ declared circumstances. 
• And, linked to this, I want to see a ramp up of investment in our Benefit Security and Universal Credit teams, with around 200 additional staff to help us keep pace with Department for Work and Pension’s counter-fraud activity.

We will also:

2. Strengthen the specialist training and support for staff to double-down on fraud and error, including mistakes made by officials.

• This will include the roll-out of a programme of education and guidance on fraud and error indicators and reporting responsibilities along with improvements to the visibility of outcomes across the Department.

Our third action will be to:

3. Maximise technology solutions in conjunction with DWP and other Departments, at Westminster and locally, to aid investigative efforts.

• We will continue to actively collaborate with Government colleagues on shared fraud defence systems. For obvious security reasons and the highly sensitive nature of this work, you will understand I cannot say more on this at present.

And finally, we will:

4. Increase public understanding of benefit fraud, and  raise awareness of our zero-tolerance approach.

• [Today] I will launch a new advertising campaign, on radio, newspapers and social media, to highlight our work to identify and root out fraudsters.
• It is really important that there is no confusion here. The Department delivers a range of supports to those who are eligible and I am clear in my support for meeting the need of those who are genuinely entitled.
• But those who are lying about their circumstances and claiming tens of thousands in benefits they are not entitled to, are fraudsters.
• I want the public to help us identify this criminal activity and also support us in deterring anyone from going down this path.

The benefits landscape is changing with more people moving onto Universal Credit.  Our world is also changing bringing different societal behaviours, increased misinformation and emerging, sophisticated technologies. 

I have set out a coherent, robust and comprehensive suite of measures to do this. 

However, I must be completely clear that a number, particularly those involving increased capacity, are subject to funding bids. 

These simply cannot proceed without the necessary financial support and, despite repeated and robust bids for additional resources to expand our counter fraud and error operations, the necessary funding has not been forthcoming. 

Every delay in resourcing this work leaves our system exposed to fraud, undermines public confidence and risks diverting vital support away from those who need it most. 

We are stretching our teams to do more with less, as the scale and sophistication of fraud continues to evolve.

If we are serious about safeguarding public money, then investment in counter fraud activity must match our ambition and be treated not as optional but essential. 

Generating a return of 8:1 on investment in 2024/25, the results achieved by my Department’s Benefit Security Intervention teams demonstrate the positive value of investing in counter fraud work. The return on investment can’t be denied and I will continue to make the case to Executive colleagues for that funding on this basis.   

Regardless, I haven’t sat back.  Where recommendations have not required additional funding, my officials have already prioritised actions that will deliver an early impact.

Recognising my Department’s efforts to generate savings through tackling fraud and error, in agreement with the Chief Secretary to the Treasury, my Department submitted a Welfare Fraud and Error “Invest to Save” Business Case. 

I welcome the confirmation from the UK Government that they will work with the Northern Ireland Executive over the coming months on ways to tackle welfare fraud and error in Northern Ireland and on different funding options, including the potential to share a portion of resulting savings with the Executive. In line with The Fresh Start Agreement, I will be seeking a 50% share of the savings.

However, the Executive must support the initial investment and to reinvest the share of savings generated in programmes that support people with barriers to employment, particularly those with disabilities or health conditions. This is a key priority for me, as it aligns with Programme for Government goals to reduce economic inactivity, tackle poverty and social exclusion, and support inclusive economic growth across Northern Ireland.

Mr Speaker, this work is about protection. Protection of our welfare system, of public confidence and of the vulnerable individuals who rely on timely and accurate support. 

We know that fraud and error remain a significant challenge across all modern benefit systems. We are not complacent — we’re adapting our approach as new risks emerge. 

We are investing as far as possible in improved technology, better analytics, and training for staff so we can continue raising standards.

We are modernising our processes to make them faster, more accurate and more responsive — because the public rightly expects a system that is both fair and robust.

But more investment is needed and quickly so we do not lag behind. With additional funding, we will act robustly and with urgency to fully implement the Task and Finish Group’s Recommendations.

My Department is delivering real improvements, but we recognise there is more to do. We will continue strengthening the system, protecting taxpayers’ money, and ensuring support goes to those who truly need it.

Let us reaffirm our shared commitment to ensure that the right money reaches the right people at the right time, and that those who seek to exploit the benefit system are met with firm and fair consequences. 

I commend the Statement to the House.