Select committee: Public Accounts Committee
Recommendation 23
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)
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
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.