Source · Select Committees · Public Accounts Committee
Recommendation 23
23
Accepted
Unfulfilled eligibility in disability benefits caused £3.7 billion in underpayments during 2024-25.
Recommendation
Unfulfilled eligibility (previously called claimant error underpayments) occurs where a claimant fails to provide accurate information or evidence about their circumstances and as a result does not receive the full amount of benefit they are entitled to. Unfulfilled eligibility was estimated to be £3.7 billion in 2024–25, up from £3.1 billion in 2023–24.42 It particularly 36 C&AG’s Report (overpayments), para 3.35; Public Authorities (Fraud, Error and Recovery) Act 2025 37 C&AG’s Report (overpayments), para 19 38 Qq 37, 47 39 Qq 37-38, 47 40 C&AG’s report (on overpayments), Figure 10 41 Q 47 42 C&AG’s report (on accounts), para 8; C&AG’s Report on DWP’s Accounts 2023–24, Session 2024–25, HC 129, 22 July 2024, para 21 13 affects claimants of disability benefits who fail to report that their condition has worsened. The highest levels of unfulfilled eligibility are for Personal Independence Payment and Disability Living Allowance, with estimated rates of 4.1% (£1.06 billion) and 11.1% (£0.85 billion) respectively in 2024–25.43 People not regularly reporting changes of circumstances is also a key cause of Universal Credit overpayments.44
Government Response Summary
The government agrees to evaluate the impact of its communications campaign to encourage claimants to report changes of circumstances and publish the results by the end of 2026, using performance, behavioral, and attitudinal measures.
Government Response
Accepted
HM Government
Accepted
6a. PAC recommendation: The department should evaluate the impact of its communications campaign to encourage claimants to report changes of circumstances and publish the results by the end of 2026. 6.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2026 6.2 The department has established a comprehensive evaluation approach to assess the impact of the ‘Tell DWP’ communications campaign on claimant reporting behaviour. The department recognises a fully causal impact evaluation is not feasible due to national rollout and lack of control group. However, it has put in place performance, behavioural, and attitudinal measures to ensure meaningful assessment of the campaign’s effectiveness. 37 6.3 Alongside the national evaluation, the department will evaluate locally targeted elements of the campaign to understand whether interventions further improve reporting behaviour. 6.4 The department will publish findings from these evaluation activities. 6b. PAC recommendation: In its Treasury Minute response to this report the department should update us on how it plans to provide more information to update people who raise concerns with it about cases of potential fraud. 6.5 The government disagrees with the Committee’s recommendation. 6.6 Any individual can report suspected benefit fraud to the department by completing a Fraud Referral Form or contacting the National Benefit Fraud Hotline. The department takes allegations seriously and will take appropriate action following referral. 6.7 Upon receiving a fraud referral, the department issues an acknowledgment confirming receipt and advising that no details about the outcome can be shared. This is because there is generally no lawful basis to disclose investigation progress or results to third parties. The Data Protection Act 2018 and the General Data Protection Regulation place strict duties on the department as a data controller, and it must ensure that personal information is protected. Providing updates could also risk prejudicing any ongoing investigation. 6.8 However, the department recognises the concerns raised in the hearing and understand that members of the public want greater visibility of the work undertaken by its counter fraud teams. The department continues to review and where appropriate, publicise its counter fraud activities. 6.9 Increasing the visibility of the department’s work will help show the impact of fraud referrals and reinforce the role the public plays in protecting the integrity of the benefit system. Publicising successful outcomes will also act as a deterrent to individuals who may otherwise consider claiming benefits they are not entitled to.