Select committee: Public Accounts Committee
Recommendation 8
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)
We asked the Department about its controls to prevent fraud and error, particularly in relation to Universal Credit. It said that, because it was monitoring controls, it was able to identify where there were possible weaknesses and make continuous improvements. It noted that it was harder to have effective controls in some areas than in others.12 We pressed the Department about controls in key loss areas, such as fraud and 6 C&AG’s Report (overpayments), paras 7, 8 7 C&AG’s Report (overpayments), para 2.25 8 Letter from DWP to the Public Accounts Committee dated 1 December 2025 9 Q 3 10 Q 17 11 Committee of Public Accounts, DWP Customer Service and Accounts 2023–24, Sixth Report of Session 2024–25, HC 354, January 2025 12 Q 13 8 error relating to people living together.13 Written evidence we received highlighted that this is the second most common cause of Universal Credit overpayments, accounting for £1.2 billion in 2024–25.14 DWP acknowledged that family life was fluid in many cases and living together was difficult to define.15
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.