A huge clampdown is expected on tax credit and benefit fraud after HM Revenue and Customs and the Department for Work and Pensions announced a one-year contract with credit reference agency Experian.
HMRC and DWP will use data from the information provider to identify undisclosed partners and income – all of which affect how much money claimants are entitled to receive.
It follows a pilot project of this work, which the departments say has already protected more than £16m of anticipated losses in tax credits.
The first cases identified by Experian are with fraud investigators and using the Experian data, the departments expect to save around £800m over life of the contract.
HMRC expects to save £700m over the life of the contract, while DWP expects to save £100m over the same period.
David Gauke, exchequer secretary to the Treasury, said: “The government will not tolerate people who dishonestly divert money away from those who are genuinely entitled to it.
“Working with Experian will allow HMRC to escalate the fight against tax credit fraudsters, helping to ensure that they are caught and punished.”
In the case of DWP, the project will act alongside the “universal credit” which will automate the benefits system and is intended to make it easier to catch people who make false claims.
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