Benefit fraud losses drop by more than £60m as Gordon Lyons defends zero-tolerance crackdown

Communities Minister Gordon Lyons has welcomed a £60million fall in benefit fraud.

Benefit fraud losses in Northern Ireland fell by more than £60 million last year, with Communities Minister Gordon Lyons saying the figures show his “zero-tolerance” approach is delivering results while warning there is “no room for complacency”.

New annual figures reveal that benefit fraud fell from £233 million in 2024 to £170.9 million in 2025 – a reduction of more than £62 million. Fraud now accounts for an estimated 1.7% of total benefit expenditure, down from 2.5% the previous year.

The latest statistics also show that members of the public are increasingly reporting suspected fraud, with referrals rising by 25% compared with the previous year.

For taxpayers across Northern Ireland, the reduction represents millions of pounds that would otherwise have been lost through fraudulent claims, while the Department for Communities says continued investment will be needed to maintain the downward trend.

Minister says fraud is ‘not a victimless crime’

Welcoming the latest figures, Communities Minister Gordon Lyons said tackling benefit fraud remains one of his key priorities.

He said:

“I make no apology for taking a zero-tolerance approach to benefit fraud.

“Fraud is not a victimless crime. Individuals who cheat the system are taking support from those who need it most – family, friends and neighbours.”

While describing the reduction as encouraging, the Minister warned that fraud levels remain too high.

“Rates of fraud, however, remain too high and we can’t be complacent. While the reduction in fraud and error is a welcome development, it would be imprudent to expect this trend to continue without sustained efforts and investment into the Department’s counter fraud and error activity.”

Convicted fraudsters named again

Lyons also highlighted measures introduced over the past year aimed at deterring benefit fraud, including the reintroduction of publicly naming people convicted of benefit fraud offences.

He said the policy is intended to increase transparency while discouraging others from attempting to abuse the welfare system.

“Last year, I announced the reintroduction of the practice of naming those who have been convicted of benefit fraud. This level of transparency is crucial in helping to deter those who may consider committing fraud and demonstrates my unstinting commitment to protect resources intended for those in genuine need.”

Savings could support employment programmes

The Minister confirmed discussions are continuing with HM Treasury over proposals that could allow Northern Ireland to retain a share of the financial savings generated through reducing benefit fraud and official error.

If agreed, those savings could be reinvested into programmes designed to help people overcome barriers to employment, particularly those living with disabilities or long-term health conditions.

Lyons said:

“I will continue to seek Executive support for the investment required which will allow us to reinvest the share of savings generated to programmes that support people with barriers to employment, particularly those with disabilities or health conditions.

“This is a key priority for me; it aligns with Programme for Government goals to reduce economic inactivity, tackle poverty and social exclusion, and support inclusive economic growth across Northern Ireland.”

The latest figures indicate progress in reducing fraudulent benefit claims, but the Department for Communities says continued enforcement, public reporting and investment in counter-fraud measures will be essential if losses are to fall further in the years ahead.