Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Accepted
Over £4 billion in benefit underpayments in 2023-24 increases financial hardship risks.
Conclusion
Benefit claimants received over £4 billion less than they were entitled to in 2023–24, increasing the risk of financial hardship for the people losing out. DWP estimates that claimants received 1.6% (£4.2 billion) less than they were eligible for in 2023–24, up from 1.5% (£3.5 billion) in 2022–
Government Response Summary
The government agrees, committing to introduce a safeguarding approach to build trust and deliver the Health Transformation Programme, which will include an optional online service to make it easier for claimants to report changes and address underpayments.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented According to the latest national statistics, "underpayments” in the benefit system represent a small percentage of total benefit expenditure. The total rate of benefit expenditure underpaid in the financial year ending 2024 was 0.4% (£1.1billion), compared with 0.5% (£1.2billion) in the previous year. The causes of unfulfilled eligibility are many and complex but trust in the department lies at the heart of the issue. Disability benefit customers have concerns that reporting changes will lead to reduction in entitlement, so many choose not to. There are also some who simply don’t recognise their needs have changed because their condition worsens slowly over a long period of time. Tackling the issue is not just a matter for the department. Wider discourse about disability benefits is bound to have an impact on perceptions which might drive increases in unfulfilled eligibility, making progress difficult. The department will continue to challenge misconceptions of its service and build trust, starting with the commitment to introduce a safeguarding approach. Over the longer term, the department plans to deliver significant service modernisation through the implementation of the Health Transformation Programme, which will improve the experience of customers and help to rebuild trust in the department and confidence for customers reporting changes. The Programme will also make it easier for customers to provide updates. It is transforming the entire PIP service, including introducing an optional online service, which will eventually enable customers to apply, track and monitor their claim and inform the department of changes of circumstances.