Source · Select Committees · Public Accounts Committee
Recommendation 1
1
Not Addressed
Committee scrutinises DWP evidence on tackling benefit fraud and error expenditure
Conclusion
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 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 not address the actual conclusion.
Government Response
Not Addressed
HM Government
Not Addressed
The government disagrees with the Committee’s recommendation. As part of a programme of work on lifting the Department for Work and Pension’s account qualification, alongside continued fraud and error reductions, the department is working with the National Audit Office (NAO) to agree what constitutes a cost-effective control environment. Until this position is agreed, the department is not yet able to accept this recommendation. The department aims to reduce overall fraud and error levels to 2.8% by 2028-29. This represents an ambitious programme of work that has been scored by the Office for Budget Responsibility (OBR). Achieving 2.8% would be the lowest cross-welfare overpayment rate since the introduction of tax credits in 2003-04 and is below the pre-pandemic level of 3.1%. This would be a remarkable achievement, well in excess of previous expectations of the Committee. The department is committed to continuing to reduce fraud and error to deliver value for money for taxpayers within the policy framework and funding agreed by Parliament. The strategy is working, with the National Statistics of fraud and error in the benefit system showing the rate of fraud and error in Universal Credit falling by one fifth in 2024-25 over the previous year and total departmental fraud and error rate reduce from 3.6% to 3.3%. The department will continue to track year-by-year progress towards 2.8% through the published fraud and error statistics and will report on the spring OBR-certified forecasts to demonstrate future deliverable reductions in fraud and error in the 2025-26 Annual Report and Accounts. billion of overpayments and £1.2 billion of underpayments in 2024–25.