Select committee: Public Accounts Committee
Recommendation 6
6th Report - DWP Customer Service and Accounts 2023-24
Published 31 Jan 2025
Addressed to HM Treasury
Public Accounts Committee DWP Customer Service and Accounts 2023-24 All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Excluding State Pension, £9.5 billion of benefit expenditure was overpaid in 2023–24 and DWP did not achieve its savings target from Targeted Case Reviews. Excluding State Pension, DWP estimates that it overpaid a total of 6.7% (£9.5 billion) in 2023–24, up from 6.6% (£8.2 billion) in 2022–23, meaning many claimants received more money than they were entitled to. DWP has a number of initiatives to tackle overpayments, including a programme of Targeted Case Reviews aimed at identifying fraud in existing UC claims. DWP is confident that the Targeted Case Reviews approach is working despite missing its savings target in 2023–24, achieving £90 million of savings against the target of £115 million. Overpayments have not come down as quickly as DWP had hoped, but DWP reports that it is on track for UC overpayments to return to below pre-pandemic levels over the period to 2030. In the 2024 Autumn Budget, the government increased funding for DWP’s counter fraud activities by £110 million in 2025–26. 5 recommendation DWP should set out how it will use the extra £110 million it received in the Autumn Budget 2024 for counter fraud activities to reduce overpayment rates.
From: Public Accounts Committee, 6th Report - DWP Customer Service and Accounts 2023-24 (HC 354), 31 January 2025
Government response
The government responded to the whole report on 6 May 2025.
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with most of the Committee's recommendations in this response, but disagrees with the recommendation that it set out when it expects to meet its PIP processing target.
- On PIP claim times, the government disagrees with the recommendation, stating the department "has to balance speed against the risk of inaccuracy". It says the Health Transformation Programme will modernise PIP "in the longer-term".
- On ESA calls, the government agrees and says it is recruiting 160 colleagues by March 2025. It states that customer wait times for ESA enquiries "will be improved by September 2025".
- On counter fraud, the government agrees and says that from April 2025 the department "will begin progressive deployment of an additional 3,000 staff", expecting the full number to be in role by 2027-28.
- On machine learning, the government agrees and gives a target implementation date of summer 2025. It says the department "will support an in-confidence session" on the 2024 fairness analysis assessment.