Computer Says “No”

The DWP, machine algorithms and another scandal in Britain

Marc Barham
Seroxcat’s Salon

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Benefits Fraud vs Tax Evasion — cost to the British taxpayer

In 2013 the Tory government widened its deployment of artificial intelligence to uncover welfare fraud with a £70m investment applying “advanced analytics” to requests for Universal Credit (UC). In recent years, the DWP has grown its use of algorithms and machine learning in the processing of benefit claimants — with a particular focus on using technology to help detect potential fraud which is now estimated at £8bn. This includes fraud and error.

However civil society groups have criticized the opacity of these deployments to date and, in its report on DWP’s annual accounts for the 2023 fiscal year, the Public Accounts Committee said that,

“…there are legitimate concerns about the level of transparency around DWP’s use of these tools and the potential impact on claimants who are vulnerable or from protected groups”.

After a trial last year using automated software to flag up potential fraudsters seeking UC cash advances, similar technology has now been developed and piloted to scan welfare applications made by people living together, self-employed people, and those wanting housing support, as well as to assess the claims people make about their capital such as savings.

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