Select committee: Public Accounts Committee
Recommendation 3
66th Report - Tackling fraud and error in benefit expenditure 2024-25
Published 11 Feb 2026
Addressed to HM Treasury
Public Accounts Committee Tackling fraud and error in benefit expenditure 2024-25 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
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.
From: Public Accounts Committee, 66th Report - Tackling fraud and error in benefit expenditure 2024-25 (HC 1231), 11 February 2026
Government response
The government responded to the whole report on 7 April 2026 (deadline 11 April 2026).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with most of the Committee's recommendations, stating that several are already implemented, but disagrees with two: setting a more stretching overpayment ambition and updating people who report suspected fraud.
- On a more stretching overpayment ambition, the government disagrees; the department is working with the NAO to agree what constitutes a cost-effective control environment and is "not yet able to accept this recommendation" until then. It aims to reduce fraud and error to 2.8% by 2028-29.
- On spending the £3.5 billion of dedicated funding, the government agrees and says the recommendation is implemented. It states the department has committed to gross savings of £14.6 billion up to the end of 2030-31 from fraud, error and debt activity.
- On the Public Authorities (Fraud, Error and Recovery) Act 2025, the government agrees. It states it is the department's intention to include "proportionate and appropriate reporting" on the powers in its Annual Report and Accounts as they are implemented.
- On carers affected by inaccurate guidance, the government agrees and says the department will write to the Public Accounts and Work and Pensions Committees every six months, with the first update in September 2026.