Source · Select Committees · Public Accounts Committee
Recommendation 2
2
Accepted
Set out actions to address root causes of official error by 2025–26 annual report
Recommendation
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.
Government Response 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.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented 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). This includes official error overpayments and underpayments. A core part of the department’s reporting on overpayments focusses on reporting continuous improvement activity to improve payment accuracy alongside its Targeted Case Review teams that target inaccuracies at the earliest opportunity. The ARA also includes a chapter on correction exercises to address underpayments.