The largest share of the fraudulent payments stems from Universal Credit, which accounted for £103million of the total
Taxpayers are unknowingly footing a bill of £4.3million every week for benefit claimants who have relocated overseas while maintaining the pretence of living in the United Kingdom.
Analysis by the Sun has revealed working families across Britain are subsidising individuals who continue to draw full welfare payments, despite living in foreign countries and popular holiday destinations.
According to estimated figures from the Department for Work and Pensions, this form of overseas fraud drained £226million from the public purse in the 12 months leading up to March.
The largest share of the fraudulent payments stems from Universal Credit, which accounted for £103million of the total.
Pension Credit fraud committed by claimants living abroad was responsible for a further £67million in losses.
Bogus Housing Benefit claims made up £29million, while £27million was improperly paid out through Personal Independence Payments.
Roughly 2,000 individuals are also receiving PIP entirely lawfully despite being permanently based outside the UK, thanks to treaty arrangements with nations in the European Economic Area.
Under existing regulations, anyone receiving welfare payments is obliged by law to notify the DWP before leaving Britain for a prolonged period.
Recipients of benefits such as PIP are permitted to remain abroad for up to 13 weeks at a time without any impact on their entitlements.
However, once a claimant exceeds that threshold, they are required to report their absence to the department, at which point their payments are suspended until they return to the UK.
It is the failure to comply with these reporting obligations that enables fraudsters to continue collecting full benefits while living permanently overseas.
Prime Minister Andy Burnham is now facing pressure to tackle the problem head-on, with demands for the Government to take decisive action against those exploiting the system.
Former Conservative leader Sir Iain Duncan Smith argued that restoring in-person appointments would help stem the tide of fraud.
"This could be cut down if the DWP brought back face-to-face meetings. People on benefits like Universal Credit should be looking for work," he said.
The DWP indicated it was already making progress in addressing the issue.
A departmental spokesman said: "We're determined to crack down on fraud. Our latest figures show us fraud and error has fallen by a quarter since its 2022 peak. We will leave no stone unturned."
One recent case saw a woman from Derby given a suspended prison sentence after admitting she illegally claimed more than £14,000 in disability benefits whilst spending extended periods living abroad.
Dawna Bird, who resides in the Alvaston area, appeared at Derby Crown Court, where she pleaded guilty to fraud on what was scheduled to be the first day of her trial.
The court heard Bird, 66, had been receiving Personal Independence Payments but failed to inform the Department for Work and Pensions about her lengthy stays in Greece, as she was legally required to do whenever she left the UK for more than 28 days.
