Source · Select Committees · Public Accounts Committee
Recommendation 4
4
Accepted
Set out plans for cross-departmental data sharing to verify Universal Credit household composition
Recommendation
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.
Government Response 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.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The department works closely with other departments on data sharing and assessing the value of different datasets. This is longstanding activity embedded in business‑as‑usual delivery, as demonstrated by the HMRC PAYE real time information feed, which has virtually eliminated fraud and error for employed earnings. Data sharing therefore remains a high departmental priority. Underpinning this, the department has well‑established cross‑government mechanisms that support data sharing including regular engagement through our cross‑government partnerships team. The team acts as a gateway between the department and partner organisations, supporting effective collaboration and data sharing for counter fraud activity. The department also participates in cross-government initiatives on common data standards and the National Data Library Kick-starter initiative on household income, alongside close collaboration with departments such as HMRC and the Home Office to identify data sharing opportunities. This work is ongoing and continues to evolve as the department transforms the benefits system. Whilst transparency is important, the department must ensure that information is not shared in ways that could assist fraudsters or that are inconsistent with our legal obligations under Data Protection law. The department remains committed to strengthening its data capabilities and exploring new opportunities for cross government collaboration. Following engagement with industry data experts, the department is enhancing the use of both internal and external data earlier in the claimant journey to support upfront eligibility verification. This includes assessing the potential value of data sets from the Department of Education alongside other cross government data sources to support fraud identification, prevention and detection.