Source · Select Committees · Public Accounts Committee
Recommendation 18
18
The Department also informed us that as of July, after redeploying staff back into measurement...
Conclusion
The Department also informed us that as of July, after redeploying staff back into measurement activities, it has been measuring fraud and error on Universal Credit and it is also undertaking measurement work on other benefits such as Pension Credit and Employment Support Allowance. It told us that “it is vital that we do our absolute best” to have an overall estimate of fraud and error in its Annual Report for 2020–21, where it also ‘aims’ to report the fraud and error cost of its easements to controls; the Department 29 Q 20 30 Letter from DWP to Committee dated 22 September 2020, page 6; StatXplore (Department for Work & Pensions), People on Universal Credit, https://statxplore.dwp.gov.uk/webapi/jsf/tableView/tableView .xhtml (accessed 15/10/20) 31 DWP ARAC 2019–20, page 238 32 DWP ARAC 2019–20, page 194 33 Q 37 34 DWP ARAC 2019–20, page 76 35 Qq 37, 45 36 DWP ARAC 2019–20, page 185 192 37 Q 28 Department for Work and Pensions Accounts 2019–20 13 said it will look at how much detail it can go into with regards to attributing the fraud and error impact of its control easements.38 Pursuing a cost-effective control environment
Government Response
Not Addressed
HM Government
Not Addressed
3: PAC conclusion: COVID-19 will lead to further increases in fraud and error. The Department has an opportunity to learn from the impacts of its control easements. 3: PAC recommendation: The Department should report both the total level of fraud and error in the benefit system and the impact of its easement of controls on fraud and error, accompanied by both narrative and evidence, in its Annual Report and Accounts for 2020–21. This impact should be clearly distinguished from other fraud and error impacts of COVID-19 e.g. due to the increase in caseload. The Department should use information obtained from the process of easing and restoring controls to assess the cost-effectiveness of controls. The Department should use information obtained from the process of easing and restoring 3.1c ontroTlhse t og oavsesrensmse tnht ea gcroesets-e wffiethc ttihvee nCoesms oiftt eceo’nst rreoclso.m mendation. Target implementation date: July 2021 3.2 The department accepts that its response to the COVID-19 pandemic has presented an opportunity to evaluate the controls it has in place and assess the impact of those controls in terms of fraud and error prevention. 3.3 During the COVID-19 pandemic, the department has seen a massive increase in demand and paid benefit to an additional three million claimants. Restrictions meant that the department could not routinely see people face to face and carry out its normal checks during this time. 3.4 The department introduced easements (changes to its processes) to ensure that it paid people who needed support during this period. This meant introducing Trust and Protect principles around key areas of verification; namely identity, eligibility and accuracy elements. This meant placing more reliance on claimants’ declarations. However, the department quickly introduced mitigations to strengthen the new process and ensure that sufficient and proportionate checks were in place. Initial forecasts indicate that this significantly reduced the department’s exposure to fraud and error. 3.5 The department is working on separating out the potential impact of the COVID-19 pandemic and potential losses from easements, along with savings from subsequent agreed changes to easements, mitigations and retrospective action. These numbers will be quite distinct from existing fraud and error levels. 3.6 The normal fraud and error sampling exercise (and publication) will set out the levels of fraud and error in Universal Credit. However, the department will in addition set out in the Annual Report and Accounts the impact the pandemic has had on Universal Credit losses.