Recommendations & Conclusions
30 items
2
Recommendation
66th Report - Tackling fraud and error …
Accepted
Errors by the Department or other parts of government caused £1.0 billion of overpayments and £1.2 billion of underpayments in 2024–25. Official error occurs when a benefit is paid incorrectly due to action, delay or a mistake by the Department, a local authority or HM Revenue & Customs. In 2024–25, …
Government response. The government agrees and states the recommendation is implemented, explaining that the department already reports on its plans and continuous improvement activities to address official error root causes and payment accuracy annually in its Annual Report and Accounts.
HM Treasury
3
Recommendation
66th Report - Tackling fraud and error …
Accepted
The Department has not made clear how it plans to spend the £3.5 billion of dedicated funding it has available to tackle fraud and error in the three years from 2026–27. The government has awarded the Department £6.7 billion of dedicated funding for fraud and error activity over the nine …
Government response. The government agrees, detailing that the £3.5 billion funding from 2026-27 will support 5,930 agents in Targeted Case Review, over 12,000 in Counter-Fraud, and investments in preventative measures and new legislation. Cost-effectiveness will be measured via OBR/Treasury scrutiny, business cases, …
HM Treasury
4
Recommendation
66th Report - Tackling fraud and error …
Accepted
The Department is not doing enough to share data with other government departments and thereby improve the accuracy of benefit payments. Administering the benefits system is complex: for example, targeting benefits such as Universal Credit to claimants’ needs and circumstances introduces complexity and increases the risk of fraud and error. …
Government response. The government agrees and states the recommendation is already implemented, citing longstanding and ongoing cross-government data sharing activities, including active collaboration with various departments and the assessment of Department for Education datasets to verify household composition.
HM Treasury
5
Recommendation
66th Report - Tackling fraud and error …
Accepted
The Department has not fully set out how it will use its new legal powers in a way that supports public trust. The Public Authorities (Fraud, Error and Recovery) Act, which received Royal Assent on 2 December 2025, gives the Department new powers to tackle fraud and error and recover …
Government response. The government accepts the recommendation and states it will include proportionate and appropriate reporting on the use and impact of powers from the Public Authorities (Fraud, Error and Recovery) Act 2025 in its Annual Reports and Accounts as they are …
HM Treasury
6
Recommendation
66th Report - Tackling fraud and error …
Accepted in Part
Claimants not reporting changes in their circumstances remains a key cause of people not receiving the full amount of benefit they are entitled to. Unfulfilled eligibility occurs where a claimant fails to provide accurate information or evidence to the Department about their circumstances and as a result does not receive …
Government response. The government agrees to evaluate its communications campaign to encourage reporting changes of circumstances and publish the results. However, it rejects providing updates on individual fraud referrals due to data protection, but commits to publicising its counter fraud activities more …
HM Treasury
7
Recommendation
66th Report - Tackling fraud and error …
Accepted
Inaccurate operational guidance has led the Department to incorrectly assess around 26,000 carers as having been overpaid Carer’s Allowance. The main cause of Carer’s Allowance overpayments is claimants having earnings which exceed the permitted limit. The Independent Review of Carer’s Allowance Overpayments, which was published in November 2025, found that …
Government response. The government accepts the recommendation and commits to writing to both the Public Accounts and Work and Pensions Committees every six months with progress updates on identifying and resolving affected carer cases. They are also modernising Carer's Allowance earnings treatment …
HM Treasury
1
Conclusion
66th Report - Tackling fraud and error …
Not Addressed
On the basis of two reports by the Comptroller and Auditor General (the C&AG), we took evidence from the Department for Work and Pensions (the Department) on tackling fraud and error in benefit expenditure.1
Government response. The government's response rejects an unspecified recommendation related to fraud and error reduction targets and cost-effective control environments, stating it cannot accept it until a position is agreed with the NAO, and highlights ongoing efforts and achievements in reducing fraud …
HM Treasury
8
Recommendation
66th Report - Tackling fraud and error …
Rejected
We asked the Department about its controls to prevent fraud and error, particularly in relation to Universal Credit. It said that, because it was monitoring controls, it was able to identify where there were possible weaknesses and make continuous improvements. It noted that it was harder to have effective controls …
Government response. The government disagrees with setting a more stretching ambition for reducing overpayment rate until it agrees with the NAO on what constitutes a cost-effective control environment, but aims to reduce fraud and error levels to 2.8% by 2028-29.
HM Treasury
9
Recommendation
66th Report - Tackling fraud and error …
Rejected
Demonstrating that it has a cost-effective control environment could help the Department move towards an unqualified audit opinion on its accounts.16 We made clear our desire to be involved in conversations with the Department and the C&AG about how the Department might get to a position where the long-standing qualification …
Government response. The government disagrees with setting a more stretching ambition for reducing overpayment rate until it agrees with the NAO on what constitutes a cost-effective control environment, but aims to reduce fraud and error levels to 2.8% by 2028-29.
HM Treasury
10
Conclusion
66th Report - Tackling fraud and error …
Acknowledged
Official error occurs when a benefit is paid incorrectly due to action, delay or a mistake by the Department, a local authority or HM Revenue & Customs.18 In 2024–25, official error overpayments were estimated at £1.0 billion, up from £0.8 billion in 2023–24, and official error underpayments were estimated at …
Government response. The department reports on its plans to improve payment accuracy and address the root causes of fraud and error each year in the Annual Report and Accounts (ARA), including official error overpayments and underpayments.
HM Treasury
11
Conclusion
66th Report - Tackling fraud and error …
Acknowledged
In its 2024–25 annual report and accounts, the Department published information on some of the work it had done to identify and tackle the root causes of fraud and error, particularly on Universal Credit through activities such as its Targeted Case Review of existing claims.20 Targeted Case Review has helped …
Government response. The department reports on its plans to improve payment accuracy and address the root causes of fraud and error each year in the Annual Report and Accounts (ARA), including official error overpayments and underpayments.
HM Treasury
12
Conclusion
66th Report - Tackling fraud and error …
Accepted
We pressed the Department on whether it is taking official error seriously enough. It acknowledged that, while official error is a smaller component of overpayments than fraud, it needed to get its own house in order. It said that it continuously sought to address official error through training for its …
Government response. The department reports on its plans to improve payment accuracy and address the root causes of fraud and error each year in the Annual Report and Accounts (ARA).
HM Treasury
13
Conclusion
66th Report - Tackling fraud and error …
Accepted
The Government has awarded the Department £6.7 billion of dedicated funding for fraud and error activity over the nine years from 2020–21 to 2028–29. £3.5 billion of this money will be available in the three years from 2026–27 to 2028–29, giving the Department the opportunity to increase the scale and …
Government response. The Department has secured £3.5 billion of dedicated funding from 2026-27 and has committed to gross savings of £14.6 billion up to the end of 2030-31 from fraud, error and debt activity.
HM Treasury
14
Recommendation
66th Report - Tackling fraud and error …
Accepted
We asked the Department how it planned to use this funding in the three years from 2026–27. It told us that the money would cover a series of measures, including a continuation of Targeted Case Review of Universal Credit claims.25 From August 2022 to March 2025, over 1.15 million claims …
Government response. The department has secured £3.5 billion of dedicated funding from 2026-27 and has committed to gross savings of £14.6 billion up to the end of 2030-31 from fraud, error and debt activity.
HM Treasury
15
Conclusion
66th Report - Tackling fraud and error …
Accepted
The Department did not make clear how it planned to use the remainder of the available funding, which amounts to over £2 billion. It indicated that it expected to spend some money implementing the new powers it has acquired through the Public Authorities (Fraud, Error and Recovery) Act 2025 but …
Government response. The Department has secured £3.5 billion of dedicated funding from 2026-27 and has committed to gross savings of £14.6 billion up to the end of 2030-31 from fraud, error and debt activity.
HM Treasury
16
Conclusion
66th Report - Tackling fraud and error …
Not Addressed
In many instances, Parliament has targeted benefits to claimants’ needs and circumstances, with the aim of ensuring that resources are used efficiently. However, this can introduce complexity and increase the risk of fraud and error.29
Government response. The government restates the committee's conclusion without providing a response.
HM Treasury
17
Conclusion
66th Report - Tackling fraud and error …
Accepted
The Department said that data was absolutely key to addressing fraud and error. Exploiting forms of data to keep benefit claims accurate was a lesson it had taken from Universal Credit. It pointed us towards its success in using real-time PAYE data from HM Revenue & Customs to verify Universal …
Government response. The department works closely with other departments on data sharing and assessing the value of different datasets.
HM Treasury
18
Conclusion
66th Report - Tackling fraud and error …
Accepted
The Department told us that there were data sources from across government and beyond that its systems could potentially use to help drive down fraud and error, and that it was very keen to exploit such opportunities.31 We note that there is information that the Department for Education and councils …
Government response. The department works closely with other departments on data sharing and assessing the value of different datasets.
HM Treasury
19
Conclusion
66th Report - Tackling fraud and error …
Not Addressed
The Department’s modern digital systems for Universal Credit have made it easier to implement fraud and error prevention measures for this benefit.33 We asked the Department what it was doing to improve the digital platforms for other benefits, so it could introduce similar initiatives in other areas. The Department noted …
Government response. The government response is a restatement of the committee's conclusion.
HM Treasury
20
Conclusion
66th Report - Tackling fraud and error …
Accepted
The Public Authorities (Fraud, Error and Recovery) Act, which received Royal Assent in December 2025, extends the Department’s powers to tackle fraud and error and recover any associated losses.36 The Department’s new powers include the ability to compel banks and other financial institutions to provide information to help it verify …
Government response. The department already reports in its Annual Reports and Accounts, information on payment accuracy, investigations and debt recovery.
HM Treasury
21
Recommendation
66th Report - Tackling fraud and error …
Accepted
We asked the Department how it would ensure that it used its new powers proportionately and effectively. It highlighted that the new powers and safeguards had been debated at length during the passage of the Bill. It said that it would be consulting on codes of practice, which would give …
Government response. The department already reports information on payment accuracy, investigations and debt recovery in its Annual Reports and Accounts, and intends to include proportionate reporting on the powers in the Public Authorities (Fraud, Error and Recovery) Act 2025 as they are …
HM Treasury
22
Conclusion
66th Report - Tackling fraud and error …
Accepted
The Department will also have a new power to recover money owed from an individual’s bank account, without the need for a court order, where the individual is not on benefits or in PAYE employment.40 It told us that this power was about fairness and making sure that it treated …
Government response. The department already reports in its Annual Reports and Accounts, information on payment accuracy, investigations and debt recovery.
HM Treasury
23
Recommendation
66th Report - Tackling fraud and error …
Accepted
Unfulfilled eligibility (previously called claimant error underpayments) occurs where a claimant fails to provide accurate information or evidence about their circumstances and as a result does not receive the full amount of benefit they are entitled to. Unfulfilled eligibility was estimated to be £3.7 billion in 2024–25, up from £3.1 …
Government response. The government agrees to evaluate the impact of its communications campaign to encourage claimants to report changes of circumstances and publish the results by the end of 2026, using performance, behavioral, and attitudinal measures.
HM Treasury
24
Recommendation
66th Report - Tackling fraud and error …
Accepted
We previously concluded that the Department needed to do more to encourage people to report changes of circumstances, which hinges on making it easy for people to get in touch and on customers trusting that they will be treated fairly.45 The Department told us that customer satisfaction was generally high, …
Government response. The department will assess the impact of the ‘Tell DWP’ communications campaign on claimant reporting behavior, evaluate locally targeted elements of the campaign, and publish findings from these evaluation activities by December 2026.
HM Treasury
25
Conclusion
66th Report - Tackling fraud and error …
Acknowledged
The Department outlined what it was doing to make it easier for people to report changes of circumstances.48 It highlighted a campaign that it would be launching in January 2026—”Tell DWP”—to help customers identify what they need to declare and encourage them to do so. It wanted to support those …
Government response. The department has established a comprehensive evaluation approach to assess the impact of the ‘Tell DWP’ communications campaign on claimant reporting behaviour and will publish findings from these evaluation activities.
HM Treasury
26
Conclusion
66th Report - Tackling fraud and error …
Rejected
We also asked the Department how it communicates with members of the public who raise concerns about potential cases of fraud, in particular what it tells them about how the cases have been resolved. The Department acknowledged the importance of ensuring that people feel raising a concern is worthwhile, and …
Government response. The government disagrees with the Committee’s recommendation as there is generally no lawful basis to disclose investigation progress or results to third parties due to the Data Protection Act 2018 and the General Data Protection Regulation, however the department continues …
HM Treasury
27
Recommendation
66th Report - Tackling fraud and error …
Accepted
From 2018–19 to 2023–24, the number of new Carer’s Allowance overpayments identified by the Department each year fluctuated between 32,500 and 60,800. The main cause of Carer’s Allowance overpayments is a claimant having earnings which exceed the permitted limit.53
Government response. The government agrees to provide the Public Accounts and Work and Pensions Committees with six-monthly updates on its progress with identifying and resolving the cases of carers affected by its inaccurate guidance, beginning in September 2026.
HM Treasury
28
Conclusion
66th Report - Tackling fraud and error …
Not Addressed
The Independent Review of Carer’s Allowance Overpayments, published in November 2025, found that the prevalence of overpayments related to earnings had been caused not by widespread individual error by carers in reporting their earnings, but by systemic issues preventing them from fulfilling their responsibility to report. This included the Department’s …
Government response. The government restates the committee's conclusion without providing a response.
HM Treasury
29
Recommendation
66th Report - Tackling fraud and error …
Accepted
We asked the Department how long it would take to reassess all the cases that might have been affected by its incorrect guidance on averaging earnings. The Department said it estimated that about 26,000 people would have been affected over the past 10 years, but it would need to review …
Government response. The department will reassess affected cases and potentially reduce, cancel, or refund debts for an estimated 26,000 carers, with the first of rolling 6 monthly updates in September 2026 and will write to the Public Accounts and Work and Pensions …
HM Treasury
30
Conclusion
66th Report - Tackling fraud and error …
Accepted
The Independent Review also found a lack of integrated, concerted leadership in relation to Carer’s Allowance overpayments. We asked the Department what it was going to do to make sure that this area got the 52 Letter from Department for Work & Pensions dated 17 December 2025 53 C&AG’s Report, …
Government response. The department has accepted 38 of the 40 recommendations set out in the Sayce review, increased the weekly Carer’s Allowance (CA) earnings limit, changed some of its guidance, will be modernising the treatment of earnings in CA to help reduce …
HM Treasury