Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Even before the impact of COVID-19 the Department had not yet delivered the value of...
Conclusion
Even before the impact of COVID-19 the Department had not yet delivered the value of savings on fraud and error on which the Business Case for Universal Credit was based.26 As these were intended to be annually recurring savings, every year of delay in achieving them represents a real and significant cost to the public purse.27 The Department is not yet able to tell us how long it will take to achieve the promised level of savings, and it is therefore unable to tell us what the total additional cost will be.28 19 DWP ARAC 2019–20, pages 186–188 20 Q 21; DWP ARAC 2019–20, page 70 21 Q 21 22 Committee of Public Accounts, Universal Credit and fraud and error: progress review, Session 2016–17, HC 489, 4 November 2016, recommendations 5 and 8; Committee of Public Accounts, Fraud and Error Stocktake, Session 2015–16, HC 394, 28 October 2015, recommendations 2 and 4. 23 DWP ARAC 2019–20, pages 189, 191, 238 24 Q16; C&AG’s Report, Rolling out Universal Credit, Session 2017–19, HC 1123, 15 June 2018, page 52, Figure 18 25 Q 18 26 Q 17, C&AG’s Report, Universal Credit: getting to first payment, Session 2019–21, HC 376, 10 July 2020, page 41, paragraph 2.24 27 C&AG’s Report, Rolling out Universal Credit, Session 2017–19, HC 1123, 15 June 2018, page 52, Figure 18 28 Q 19, Q 20 12 Department for Work and Pensions Accounts 2019–20
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.