Recommendation 30

Fraud and error have an impact on people’s lives; when the Department recovers overpayments, this can lead to problems for claimants who face deductions from their income, whereas underpayments mean that households do not get the support they are entitled to.61 The Department informed us that it ‘carefully considers’ whether there are 54 DWP ARAC 2019–20, page 224 55 C&AG’s Report, Departmental Overview 2019–20: Department for Work & Pensions, 13 October 2020, page 16 56 DWP ARAC 2019–20, pages 24, 76–77, 218 57 Qq 33, 34 58 DWP ARAC 2019–20, page 175 59 Q 33 60 DWP ARAC 2019–20, pages 72, 225 61 DWP ARAC 2019–20, page 186 16 Department for Work and Pensions Accounts 2019–20 cases of hardship, in which case it might recover at a much lower rate or pause recovery. It added that it will be starting a new initiative next year called ‘Breathing Space’; to make sure that where it has vulnerable people, it is looking at whether they are able to payback when the Department needs to make a deduction.62 The Department’s approach to vulnerable claimants continues to be a concern and is an area where the previous Committee also made recommendations for improvement.63