Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Benefit overpayments are at their highest estimated rates and have risen consistently since 2015–16.
Conclusion
Benefit overpayments are at their highest estimated rates and have risen consistently since 2015–16. Excluding State Pension, the estimated rate of overpayments increased again to 4.8% (£4.5 billion) of estimated benefit expenditure of £93.1 billion for 2019–20, from a restated rate of 4.4% (£3.8 billion) in 2018–19. The estimated rate of underpayments, excluding State Pension, decreased to 2.0% (£1.9 billion) in 2019–20, from its restated rate of 2.2% (£1.9 billion) in 2018–19.19
Government Response
Not Addressed
HM Government
Not Addressed
2: PAC Conclusion: Even before COVID-19, fraud and error overpayments were at their highest ever rates, with around £1 in £10 of Universal Credit paid incorrectly. 2: PAC recommendation: The Department needs to show sustained progress in reducing fraud and error. It should set annual targets, by risk and benefit, against which its progress can be assessed, based on its expectation of the intended impact of its counter fraud and error initiatives over time. These should be set out and reported against in its Annual Report and Accounts for 2020–21 For Universal Credit, the Department should set out its plan for year-on-year reductions in fraud and error, assessing performance against short-term, achievable targets. 2.1 The government agrees with the Committee’s recommendation. Ta rget implementation date: July 2021 2.2 The department had provisionally agreed to set an overall target for 2020-21, based on detailed fraud and error forecasts along with Universal Credit business case assumptions. The confirmation of this target was suspended with the onset of COVID-19. 2.3 The department is currently undertaking detailed sampling work in order to provide an estimate of the level of fraud and error in 2020-21. The focus will be primarily on reviewing Universal Credit as a priority, given the increase in the caseload and given the rates of fraud and error for Universal Credit. 2.4 The department anticipates that the COVID-19 pandemic will have impacted fraud and error levels, and this detailed analysis is needed in order to baseline the current position. The department is committed to publishing an annual target post COVID-19 pandemic, and to using the Fraud and Error Framework to drive fraud and error down to the lowest feasible level. 2.5 The department will publish its Fraud and Error results as part of its annual Statistical release. Following that, the department should be in a position to publish an annual target for 2021-22. The department will consider the viability of individual/lower level targets as part of this approach.