Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Accepted
DWP allocated £3.5 billion dedicated funding to tackle fraud and error
Conclusion
The Government has awarded the Department £6.7 billion of dedicated funding for fraud and error activity over the nine years from 2020–21 to 2028–29. £3.5 billion of this money will be available in the three years from 2026–27 to 2028–29, giving the Department the opportunity to increase the scale and impact of its approach.24
Government Response Summary
The Department has secured £3.5 billion of dedicated funding from 2026-27 and has committed to gross savings of £14.6 billion up to the end of 2030-31 from fraud, error and debt activity.
Government Response
Accepted
HM Government
Accepted
3.1 The government agrees with the Committee’s recommendation. Recommendation implemented 3.2. The department has secured £3.5 billion of dedicated funding from 2026-27. This funding enables the deployment of 5,930 agents into the Targeted Case Review programme and over 12,000 agents working in Counter-Fraud, Compliance and Debt, as well as investment in preventative activities and funding to deliver the savings commitments made over previous fiscal events. 3.3 Since Autumn Budget 2024, the department has committed to gross savings of £14.6 billion up to the end of 2030-31 from fraud, error and debt activity. Activities include: • Improvements to the verification of self-employment income and expenses and of capital in claimants’ bank accounts to prevent fraud and error. • Introducing regular requests for Universal Credit claimants to confirm whether their circumstances have changed. • Introducing legislation to require banks to share data with the department to identify potential overpayments. 3.4 The department demonstrates value for money in two ways: through external scrutiny of its costings by the OBR and the Treasury (HMT), and through transparent reporting of performance via published National Statistics and the Annual Report and Accounts. As part of the fiscal event process, the OBR and HMT scrutinise and challenge welfare spending measures, including new activities to reduce fraud, error and debt. Before funding is approved, the department must demonstrate value for money through business cases that outline costs, benefits, risks and delivery assurance, providing HMT with confidence that initiatives will deliver in line with expectations on return on investment.