Recommendation 11

The Department does not currently have a target rate of fraud and error for us to use to hold it to account. However, the Department does now “absolutely accept in principle” that it should have a target “given the level of public scrutiny and interest in the question of fraud and error in the DWP and benefits.” It told us that it was going to set a headline target of around 2.3% for 2020–21; this target appears to be for overpayments including State Pension which were at 2.4% (£4.6 billion) in 2019–20.20 However, the Department informed us that it reversed its decision to set a target for 2020–21 because it first needs to establish a “clear baseline” after the effect of COVID-19.21 This Committee has made several recommendations in recent reports for the Department to set fraud and error targets, not only at an overall rate, but for each benefit.22 This would allow for better scrutiny of the impact of the Departments’ initiatives and emerging new risks of fraud and error.