Spain is favourite migration destination for benefit cheats

Spain is famous as an expat destination for its sun, sea and sangria, but it seems it’s also infamous as a convenient destination for those wishing to cheat the UK benefits system.

Almost 800 cases of benefit fraud by expats in Spain were discovered in 2013 by investigators from the UK Department of Work and Pensions (DWP). Many more are expected in 2014 as the state agency has now set up an office in Madrid to deal with the scams.

Once the destination of choice for fugitives running from British justice, the Spanish Costas would seem to have become havens for a less violent class of criminal – Brits, mostly retired and happily cheating the welfare system. The Madrid-based fraud investigation team is hoping to uncover hundreds more and bring them to justice.

Recent research puts Spain at the top of the list for benefit cheats, higher even than Pakistan, Turkey or India. ‘Abroad Fraud’ as it’s known, involves false claiming of pension credits, income support and disabled support, with the DWP suggesting that many of those claiming are pensioners.

During the last five years, 1,276 whistleblower calls were made to the DWP and were investigated, with around £5 million recovered by the agency. Worldwide, it’s estimated that some £84 million is being siphoned off in benefits fraud by British expats living overseas.

Income support and even housing credit are top of the list, and some are even claiming child benefit for children living elsewhere.Success stories include Spanish expat Nigel Hadley, who was forced to sell his villa in Marbella in order to repay £25,000 of fraudulently-claimed benefits.