Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Acknowledged
Official error in benefit payments remains substantial and is increasing
Conclusion
Official error occurs when a benefit is paid incorrectly due to action, delay or a mistake by the Department, a local authority or HM Revenue & Customs.18 In 2024–25, official error overpayments were estimated at £1.0 billion, up from £0.8 billion in 2023–24, and official error underpayments were estimated at £1.2 billion, up from £1.1 billion in 2023–24.19 Reducing these amounts is largely within the Department’s own control.
Government Response Summary
The department reports on its plans to improve payment accuracy and address the root causes of fraud and error each year in the Annual Report and Accounts (ARA), including official error overpayments and underpayments.
Government Response
Acknowledged
HM Government
Acknowledged
2.1 The government agrees with the Committee’s recommendation. Recommendation implemented 2.2 The department reports on its plans to improve payment accuracy and address the root causes of fraud and error each year in the Annual Report and Accounts (ARA). This includes official error overpayments and underpayments. 2.3 A core part of the department’s reporting on overpayments focusses on reporting continuous improvement activity to improve payment accuracy alongside its Targeted Case Review teams that target inaccuracies at the earliest opportunity. The ARA also includes a chapter on correction exercises to address underpayments.