Recommendation 26

Underpayment rates are highest for disability benefits. In 2023–24, the unfulfilled eligibility rate for Disability Living Allowance was 11.1% (£750 million) and for Personal Independence Payment was 4.0% (£870 million). The most common reason for underpayments is customers failing to inform DWP that their condition has worsened or their needs have increased, 48 C&AG’s Report (on accounts), para 4; C&AG’s Report, An Overview of the Department for Work & Pensions for the new Parliament 2023–24, October 2024, page 22 49 C&AG’s Report (on accounts), para 21 50 C&AG’s Report (on accounts), para 14 51 C&AG’s Report (on accounts), para 21 14 meaning they would have been entitled to more financial support.52 These underpayments leave the claimants affected with less money than they should have, increasing the risk of them facing financial hardship.53