DWP boss in benefit fraud cover-up after Blackpool colleague's fraudulent Universal Credit claim

Dawn Lyons faced a jail term or heavy fine after she admitted a charge under the Misuse of Computers Act during her role as a DWP team leader in Blackpool.

But Blackpool Magistrates went outside their sentencing guidelines when dealing with the 52-year-old, of Bowness Avenue, Thornton, who had worked for the DWP in the resort for 30 years.

Sparing her a prison sentence, chair of the bench Mrs Nora Sopworth told the senior civil servant: “This is a most unusual case during which you cooperated fully with the investigation.

"You made no personal financial gain but the effect on you has been significant and that is why we feel we can step outside our guidelines.”

Instead, Magistrates handed Lyons a six month conditional discharge. She had already been fired from her job for her role in the scandal.

What happened?

Lyons illicity gained unauthorised access to the DWP benefits system to shut down a fraudulent claim made by her deputy team leader.

He had claimed Universal Credit when he found himself unable to pay bills and had received an advance emergency payment.

The court heard that when Lyons learned about the fraud, she reportedly told him, “what the hell have you done!?”

It was her subsequent actions which then got her into trouble.

She failed to report the incident to her own manager and, instead chose to access her colleague’s DWP benefits account and close it down.

Her actions left a brief but telltale computer ‘fingerprint’ on the computer file, which came back to haunt her. By deleting the claim, she unknowingly triggered a response from the Debt Recovery Unit who sought to recover the money from the man.

The episode led to an internal investigation within the DWP which ultimately revealed Lyons' role in covering up the fraud.

She was initially suspended before being sacked and placed on a reduced pension.

Martin Hillson, defending, said Lyons was now having to claim benefits herself to get by and now rarely left her home in Thornton.

He said: “In a bid to help a colleague get out of the mess he was in, she has lost everything. She had no personal relationship with him and no financial benefit went to her.

“It was a misplaced sense of loyalty which has cost her dear.”

The court heard that the fraudulent payment to her former colleague was being repaid to the DWP.