The cash will be used to raise capacity to detect and catch fraudsters.
Around 2,000 trained specialists will be deployed to review claims in the crackdown carrying out property checks, following up earning declarations of self-employed claimants and cross-checking bank details.
It builds on the department’s counter-fraud team investigations in cyber security and serious and organised crime.
They led government action to tackle organised crime groups seeking to exploit support during the pandemic, shutting down systematic attacks on the benefit system and preventing at least £1.9bn in benefits from being paid to people trying to scam the system.
Thérèse Coffey, Secretary for Department for Work and Pensions, said: “Investing in measures to fight fraud protects honest taxpayers’ money and stops criminals funding their illicit activities off the back of our welfare system.
“We know the characteristics of a suspicious claim. This half a billion-pound cash injection is a clear message to fraudsters and criminal gangs: Anyone trying to con us will get caught out.”