Join the Socialist Party Join us today!

Printable version Printable version

Facebook   Twitter

Link to this page:

From The Socialist newspaper, 17 July 2019

Fraudsters thrive and claimants suffer in despicable Universal Credit scam

Benefits claimants are under the cosh, photo JJ Ellison/CC

Benefits claimants are under the cosh, photo JJ Ellison/CC   (Click to enlarge)

Jeremy Davidson, Hull Socialist Party

Thousands of people on Universal Credit have been left up to 1,500 worse off following a criminal scam where fraudsters obtain personal details of vulnerable claimants.

Often impersonating staff for the Department for Work and Pensions (DWP), these criminals steal information from unsuspecting victims in need of financial support and create fake applications on their behalf.

The scammers apply for and receive a slice of the advanced loan, given to claimants as a monetary buffer to get them through the mini- mum five-week waiting period before their first payment.

Outrageously, reports say that when the DWP is informed of the fraudulent claim, the claimants are stopped from returning to their legacy benefits, despite being worse off on the new Universal Credit system. They don't even have any knowledge that a claim has been made on their behalf!

The government consistently stated that Universal Credit would reduce benefit fraud. But the reality is a sharp rise in fraudulent activity, leaving benefit claimants worse off.


These alarming revelations are yet more evidence that the Universal Credit system is not fit for purpose, just like the shambolic, incompetent, pro-austerity Tory government. Universal Credit was never designed to provide for and support the most vulnerable in our society. Rather, it is an attempt by the Tories to save money on welfare spending. A close friend of mine, who recently qualified as a teacher, had the misfortune of falling seriously ill. She's a single mother, so she received 107 a week in working and child tax credits to help make ends meet.

She applied for Universal Credit due to her disability. But these payments were immediately stopped, even though she's entitled to them

She got an advanced loan of 950 before her Universal Credit payments begin in September. Not only is she receiving less financial aid, but when Universal Credit payments start, she will have to pay back 78 a month, for a year, to cover the loan!

The Tories' system leaves vulnerable people like my friend poorer, but also demands they pay back the money they were entitled to in the first place! This despicable practice has to end now.

The demand to replace Universal Credit with wages and benefits that people can genuinely live on must be accompanied by a fight for a general election to end this Tory government. These calls have to resonate from the organised trade union movement potentially the most powerful force in society, and many union members are on Universal Credit themselves.

This call must come from Jeremy Corbyn and the Labour Party too. The working class has suffered severely over nine years of Tory austerity. The Tories and Universal Credit must go.

Donate to the Socialist Party

Finance appeal

The coronavirus crisis has laid bare the class character of society in numerous ways. It is making clear to many that it is the working class that keeps society running, not the CEOs of major corporations.

The results of austerity have been graphically demonstrated as public services strain to cope with the crisis.

The government has now ripped up its 'austerity' mantra and turned to policies that not long ago were denounced as socialist. But after the corona crisis, it will try to make the working class pay for it, by trying to claw back what has been given.

  • The Socialist Party's material is more vital than ever, so we can continue to report from workers who are fighting for better health and safety measures, against layoffs, for adequate staffing levels, etc.
  • When the health crisis subsides, we must be ready for the stormy events ahead and the need to arm workers' movements with a socialist programme - one which puts the health and needs of humanity before the profits of a few.
Inevitably, during the crisis we have not been able to sell the Socialist and raise funds in the ways we normally would.
We therefore urgently appeal to all our viewers to donate to our Fighting Fund.

Please donate here.

All payments are made through a secure server.

My donation


Your message: 


In The Socialist 17 July 2019:

What we think

Stop Boris - general election now


Fraudsters thrive and claimants suffer in despicable Universal Credit scam

Wales: chronic NHS underfunding exposed

Them & Us

Imperial typewriters dispute

The 45th anniversary of the strike

Workplace news

NSSN conference 2019: at the heart of trade union struggle

Health visitors strike for the first time ever

Bradford NHS workers strike against privatisation

Victory for Stagecoach bus strikers!

Newham housing repairs workers announce strike dates

Council seeks to take budget deficit out on school staff and pupils

Moon landing 50 years on

50 years since Apollo 11 - 'One giant leap': how political conflict launched the moon landing

Socialist Party reports and campaigns

Socialist change to end climate change

Residents mobilise to stop eviction

Stop the fire service cuts

Durham Miners' Gala

Campaigners force U-turn over NHS privatisation

Leicestershire - No more austerity!

Excellent response to building fund appeal

Socialist Party Fighting Fund

International socialist news and analysis

Greece elections: Syriza ousted amid voter disillusionment

Sudan masses mobilise against state repression

Interview: protests over killing in Israel


The Socialist Inbox


Home   |   The Socialist 17 July 2019   |   Join the Socialist Party

Subscribe   |   Donate   |   Audio  |   PDF  |   ebook

Related links:

Universal Credit:

triangleMake the super-rich pay, not the poorest

triangleNo surprise, poverty is rising

triangleWhat will the spending review mean for me?

triangleDon't let Tories starve our kids

triangleTV: Council House Britain


triangleFilm: 'Sick' - 'They've got people looking in the wrong direction'

trianglePCS: No to DWP management's plans - Yes to action

triangleJobcentre reopening: only union struggle will put safety first

triangleBenefits system being used to force return to unsafe workplaces


triangleBuilding back better? Fight for a socialist recovery

triangleTories deliberately underfund childcare

triangleUniversity funding reform: Fight for free, fully funded education for all


triangleAnti-protest bill breaches human rights

triangleFurlough reduction risks job losses

News and socialist analysis

News and socialist analysis



Interview with newly elected Unison NEC member



Urgent need to build alternative to pro-capitalist politicians



NHS in crisis - 'It's time for action'



Building back better? Fight for a socialist recovery


Northern Ireland

Northern Ireland and Brexit



Tory review won't deliver justice for rape victims



Unite general secretary contest: Vote for Sharon Graham



Furlough reduction risks job losses



Tories deliberately underfund childcare



Anti-protest bill breaches human rights


Care workers

Sacking non-vaccinated care workers will not save lives



Leicester private healthcare tragedy



TUSC calls for local 'People's Budget' campaigns



Unite general secretary contest: Vote for Sharon Graham



Women's health matters

triangleMore News and socialist analysis articles...

Join the Socialist Party
Subscribe to Socialist Party publications
Donate to the Socialist Party
Socialist Party Facebook page
Socialist Party on Twitter
Visit us on Youtube



Phone our national office on 020 8988 8777

Email: [email protected]

Locate your nearest Socialist Party branch Text your name and postcode to 07761 818 206

Regional Socialist Party organisers:

Eastern: 079 8202 1969

East Mids: 077 3797 8057

London: 075 4018 9052

North East: 078 4114 4890

North West 079 5437 6096

South West: 077 5979 6478

Southern: 078 3368 1910

Wales: 079 3539 1947

West Mids: 024 7655 5620

Yorkshire: 078 0983 9793



Alphabetical listing

June 2021

May 2021

April 2021

March 2021

February 2021

January 2021