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, …
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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, official error overpayments were estimated at £1.0 billion, up from £0.8 billion in 2023–24, and official error underpayments were estimated at £1.2 billion, up from £1.1 billion in 2023–24. The Department has published information on some of the work it has done to identify and tackle the root causes of fraud and error, but this analysis focused on claimant error and fraud. We expect the Department to take official 3 error as seriously as it does claimant error and fraud, given the large amounts of money involved and the fact that reducing this error is largely within its own control. recommendation The Department should set out what action it will take to address the root causes of official error, with the aim of publishing a progress update in its 2025–26 annual report and accounts.
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Government response AI summary
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.
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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 …
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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 years from 2020–21 to 2028–29. Of this, £3.5 billion will be available in the three years from 2026–27. The Department says that it will use £300 million to £400 million each year to continue its Targeted Case Review programme, which seeks to detect and correct fraud and error in Universal Credit claims. It is also planning to extend Targeted Case Review to Pension Credit, at a cost of up to £70 million per year. However. the Department has not made clear how it will use the remainder of the available funding, which amounts to over £2 billion. It has indicated that it intends to use some of the money to implement its new legal powers, but did not say how much this would cost. recommendation The Department should set out in the Treasury Minute how it plans to spend the £3.5 billion of dedicated funding available from 2026–27, including how it will measure the cost-effectiveness and return on investment of the areas it funds.
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Government response AI summary
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, and transparent public reporting.
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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. …
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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. Access to reliable data is key to keeping benefit payments accurate. However, the Department’s benefit systems are not fully integrated and it lacks common data standards, which makes it difficult to take a data-driven approach to preventing and detecting fraud and error. The Department uses real-time PAYE earnings data from HM Revenue & Customs to verify claimants’ employment earnings, which it holds up as a ‘gold standard’ example of data sharing. However, it does not seem to have similar data-sharing arrangements with other government departments, which could help it tackle key loss areas such as household composition. 4 Data from the Department for Education, for example, could help the Department to verify the number of children in households claiming Universal Credit. recommendation The Department should set out in the Treasury Minute how it plans to work directly with other departments on data sharing, including how it can work with the Department for Education to help verify household composition as part of its checks for Universal Credit.
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Government response AI summary
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.
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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 …
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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 debt. For example, it can now compel banks and other financial institutions to provide information to help verify a claimant’s eligibility for benefits, and third parties to provide information when it is conducting criminal investigations. It will also be able to recover money owed by individuals directly from their bank accounts without the need for a court order where an individual is not on benefits or in PAYE employment. It is important that the Department uses these extensive powers proportionately and effectively. The Department says it is putting in place safeguards to make sure it does so, such as issuing codes of practice, and it also highlights the role HM Inspectorate of Constabulary and Fire & Rescue Services will play in providing oversight of how it uses the new powers. recommendation The Department should report annually, in its annual reports and accounts, on how often it has used the powers in the Public Authorities (Fraud, Error and Recovery) Act 2025 and with what impact.
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Government response AI summary
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 implemented, building on existing reporting.
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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 …
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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 their full benefit entitlement. Unfulfilled eligibility was estimated to be £3.7 billion in 2024–25, up from £3.1 billion in 2023–24. It particularly affects claimants of disability benefits, such as Personal Independence Payment, who fail to report that their condition has worsened. The Department acknowledges that building trust with customers is key to reducing the number of incorrect benefit payments, alongside making it easier for people to report changes of circumstances. It is launching a communications campaign in January 2026 to help customers identify what they need to tell the Department 5 and to encourage them to do so. The Department also acknowledges that it needs to do more to build public trust by ensuring that people feel raising concerns about potential fraud is worthwhile, and has agreed to consider what information it might be able to share about the outcome of cases with people who make fraud referrals. recommendation a. The Department should evaluate the impact of its communications campaign to encourage claimants to report changes of circumstances and publish the results by the end of 2026. b. In its Treasury Minute response to this report the Department should update us on how it plans to provide more information to update people who raise concerns with it about cases of potential fraud.
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Government response AI summary
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 broadly.
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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 …
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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 the prevalence of earnings- related overpayments had been caused by systemic issues that prevented carers from fulfilling their responsibility to report information about their circumstances. This included the Department having operational guidance that was inconsistent with the governing regulations and that did not allow staff discretion to average fluctuating earnings where claimants had an irregular earnings pattern. The Department estimates that, over the past 10 years, about 26,000 people were incorrectly recorded as having been overpaid Carer’s Allowance as a result. It has committed to put this right and believes it will take around two years to identify all those affected, with 200,000 cases reviewed in the process. A lack of integrated, concerted leadership from the Department allowed this issue to persist, and it must now work quickly to provide redress to the people affected. recommendation Within six months, DWP should write to update the Committee on its progress with identifying and resolving the cases of carers affected by its inaccurate guidance. 6 1 Levels of fraud and error Introduction
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Government response AI summary
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 and reassessing an estimated 26,000 …
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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 AI summary
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 and error. The response does …
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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 …
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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 in some areas than in others.12 We pressed the Department about controls in key loss areas, such as fraud and 6 C&AG’s Report (overpayments), paras 7, 8 7 C&AG’s Report (overpayments), para 2.25 8 Letter from DWP to the Public Accounts Committee dated 1 December 2025 9 Q 3 10 Q 17 11 Committee of Public Accounts, DWP Customer Service and Accounts 2023–24, Sixth Report of Session 2024–25, HC 354, January 2025 12 Q 13 8 error relating to people living together.13 Written evidence we received highlighted that this is the second most common cause of Universal Credit overpayments, accounting for £1.2 billion in 2024–25.14 DWP acknowledged that family life was fluid in many cases and living together was difficult to define.15
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Government response AI summary
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.
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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 …
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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 could be lifted. The Department agreed that it was keen for these conversations to take place, and acknowledged that Parliament would want to have confidence that it was driving down fraud and error relentlessly.17 The scale of official error
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Government response AI summary
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.
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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 …
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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 £1.2 billion, up from £1.1 billion in 2023–24.19 Reducing these amounts is largely within the Department’s own control.
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Government response AI summary
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.
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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 …
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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 inform a range of improvements – for example, the Department is introducing ‘periodic redeclaration’ of Universal Credit claims after Targeted Case Review helped identify people not regularly reporting changes of circumstances as a key source of error.21 We note, however, that the Department’s analysis of the root causes of fraud and error has to date focused on claimant error and fraud rather than official error.22 13 Q 14 14 FAE0007 15 Q 14 16 C&AG’s Report (overpayments), para 2.16 17 Q 4 18 C&AG’s Report (on accounts), para 6 19 C&AG’s Report (on accounts), paras 6, 27; C&AG’s Report on DWP’s accounts 2023–24, Session 2024–25, HC 129, 12 July 2024 , paras 14, 21 20 DWP Annual Report and Accounts 2024–25, pages 104-105 21 C&AG’s Report (overpayments), para 3.21 22 DWP Annual Report and Accounts 2024–25, pages 104-111 9
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Government response AI summary
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.
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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 …
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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 staff, regular audits and other lines of defence.23 23 Q 18 10 2 Measures to address fraud and error Funding to tackle fraud and error
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Government response AI summary
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).
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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 …
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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 impact of its approach.24
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Government response AI summary
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.
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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 …
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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 were reviewed, generating savings of £581 million.26 The Department said it was expecting to spend between £300 million and £400 million per year on Targeted Case Review. It was also planning to extend this initiative to other areas, particularly Pension Credit, at a cost of between £60 million and £70 million per year. It estimated that this would save between £30 million and £190 million annually.27
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Government response AI summary
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.
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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 …
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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 did not say how much this would cost. The Department also told us that it planned to employ a ‘test and learn’ approach in tackling fraud and error, with an expectation that successful measures should deliver a return on investment in excess of 3:1.28 24 C&AG’s Report (overpayments), paras 12, 21 25 Q 8 26 C&AG’s Report (overpayments), paras 3.27, 3.28 27 Q 8; Letter from DWP to the Public Accounts Committee dated 1 December 2025 28 Q 8 11 Data sharing between government departments
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Government response AI summary
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.
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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 AI summary
The government restates the committee's conclusion without providing a response.
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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 …
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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 Credit claimants’ earnings, which it held up as a “gold standard” example of data sharing.30
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Government response AI summary
The department works closely with other departments on data sharing and assessing the value of different datasets.
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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 …
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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 have that could help the Department to verify household composition as part of its checks for Universal Credit.32
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Government response AI summary
The department works closely with other departments on data sharing and assessing the value of different datasets.
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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 …
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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 that its Service Modernisation Programme would be important in bringing about the digital improvements needed to support this work.34 For example, the ‘one customer view’ system would enable departmental staff to view all elements of a customer’s claim in one place.35 29 C&AG’s Report (overpayments), para 1.13; C&AG’s Report (on accounts), para 11 30 Q 12 31 Q 12 32 Qq 12, 14, 16 33 C&AG’s Report (overpayments), para 2.14 34 Qq 10-11 35 Q 48 12 Use of new legal powers
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Government response AI summary
The government response is a restatement of the committee's conclusion.
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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 …
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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 a claimant’s eligibility and entitlement for certain benefits. It will also have greater information-gathering powers whereby a larger range of third parties could be required to provide information to the Department in support of criminal investigations.37
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Government response AI summary
The department already reports in its Annual Reports and Accounts, information on payment accuracy, investigations and debt recovery.
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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 …
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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 more detail about how the safeguards would work.38 The Department told us that the ultimate safeguard would be the involvement of HM Inspectorate of Constabulary and Fire & Rescue Services – the Inspectorate would oversee how the Department used its powers, produce an independent report and come to a view on whether the powers were being used appropriately.39
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Government response AI summary
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 implemented.
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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 …
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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 people who chose not to pay debts owed to the Department consistently. It said it would make sure that those involved had the financial resilience to allow it to recover the money owed.41 Reporting changes of circumstances
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Government response AI summary
The department already reports in its Annual Reports and Accounts, information on payment accuracy, investigations and debt recovery.
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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 …
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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 billion in 2023–24.42 It particularly 36 C&AG’s Report (overpayments), para 3.35; Public Authorities (Fraud, Error and Recovery) Act 2025 37 C&AG’s Report (overpayments), para 19 38 Qq 37, 47 39 Qq 37-38, 47 40 C&AG’s report (on overpayments), Figure 10 41 Q 47 42 C&AG’s report (on accounts), para 8; C&AG’s Report on DWP’s Accounts 2023–24, Session 2024–25, HC 129, 22 July 2024, para 21 13 affects claimants of disability benefits who fail to report that their condition has worsened. The highest levels of unfulfilled eligibility are for Personal Independence Payment and Disability Living Allowance, with estimated rates of 4.1% (£1.06 billion) and 11.1% (£0.85 billion) respectively in 2024–25.43 People not regularly reporting changes of circumstances is also a key cause of Universal Credit overpayments.44
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Government response AI summary
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.
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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, …
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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, but acknowledged that it needed to go further in building trust.46 It also spoke about research it had done to understand how people feel about the Department, and said what was interesting was that people who regularly dealt with the Department had a more positive view of the Department than the wider population.47
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Government response AI summary
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.
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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 …
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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 people who were honest but who might make a mistake.49 The Department also noted that Universal Credit claimants could report changes of circumstances via the online journal portal and said that it would look to roll that functionality out to other benefits.50
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Government response AI summary
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.
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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 …
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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 agreed to consider what more it might be able to do.51 It subsequently wrote to tell us that, where a fraud referral was received, it confirms receipt and explains that no details on the outcome of the case can be provided. It said that, generally, it cannot provide updates as there is no lawful basis to disclose this information to a third party. The Department 43 DWP report (on accounts), para 28 44 DWP report (overpayments), para 17 45 Committee of Public Accounts, DWP Customer Service and Accounts 2023–24, Sixth Report of Session 2024–25, HC 354, 31 January 2025, para 5 46 Q 41 47 Q 40 48 Qq 14, 40 49 Q 14 50 Q 40 51 Qq 44-46 14 noted, however, that it was sympathetic to the points we had raised, and committed to explore what was possible within the confines of the legislation and to update us when it had done so.52 Carer’s Allowance
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Government response AI summary
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 to review and publicise its …
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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
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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
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Government response AI summary
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.
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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 …
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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 operational guidance that was inconsistent with the governing regulations.54 The Department told us that the guidance it had issued in 2015 had not allowed its staff discretion to average fluctuating earnings where claimants had an irregular earnings pattern, despite the law allowing this.55
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Government response AI summary
The government restates the committee's conclusion without providing a response.
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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 …
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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 200,000 cases to identify the individuals involved. It thought that this might take about two years. The Department told us that it was mobilising teams to address this matter in the same way as it had addressed systemic underpayments found in other parts of the welfare system, such as in State Pension.56 It had £75 million available to build and run the teams and to fund payments to customers.57 The Permanent Secretary said that he was sorry for all of those affected by this issue but that he was determined to put it right.58
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Government response AI summary
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 Committees every six months with …
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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, …
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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, Carer’s Allowance, Session 2024–25, HC 377, 11 December 2024, paras 2.3, 2.7 54 Department for Work & Pensions, Independent Review of Carer’s Allowance Overpayments, 25 November 2025 55 Q 21 56 Q 21 57 Q 24 58 Qq 21-22 15 attention and leadership it deserved going forward. The Department told us that it had made progress, but not enough. It said that it had appointed a service owner to lead across Carer’s Allowance and to own this problem. It also highlighted that it had eliminated the backlog of earnings alerts received from HM Revenue & Customs. Where previously it had funding to investigate only about 50% of alerts, over the past year it had been funded to look into every alert received and could thereby avoid people generating an overpayment and building up a debt.59 59 Q 22 16
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Government response AI summary
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 the number of overpayments occurring …
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HM Treasury