Source · Select Committees · Public Accounts Committee
Recommendation 11
11
Acknowledged
DWP’s root cause analysis overlooks official error, focusing on claimant fraud
Conclusion
In its 2024–25 annual report and accounts, the Department published information on some of the work it had done to identify and tackle the root causes of fraud and error, particularly on Universal Credit through activities such as its Targeted Case Review of existing claims.20 Targeted Case Review has helped inform a range of improvements – for example, the Department is introducing ‘periodic redeclaration’ of Universal Credit claims after Targeted Case Review helped identify people not regularly reporting changes of circumstances as a key source of error.21 We note, however, that the Department’s analysis of the root causes of fraud and error has to date focused on claimant error and fraud rather than official error.22 13 Q 14 14 FAE0007 15 Q 14 16 C&AG’s Report (overpayments), para 2.16 17 Q 4 18 C&AG’s Report (on accounts), para 6 19 C&AG’s Report (on accounts), paras 6, 27; C&AG’s Report on DWP’s accounts 2023–24, Session 2024–25, HC 129, 12 July 2024 , paras 14, 21 20 DWP Annual Report and Accounts 2024–25, pages 104-105 21 C&AG’s Report (overpayments), para 3.21 22 DWP Annual Report and Accounts 2024–25, pages 104-111 9
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.