Select committee: Public Accounts Committee
Recommendation 6
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)
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.
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.