Source · Select Committees · Public Accounts Committee
Recommendation 28
28
Accepted
Most underpayments stem from claimants with health conditions not reporting worsening circumstances.
Conclusion
DWP confirmed that most underpayments stemmed from people with health conditions not informing DWP when their condition had deteriorated. It acknowledged that it needed regularly to encourage people to come forward about changes of circumstances and make it easy for them to do so. It also stressed the importance of trust – creating an environment in which people think that they will be treated fairly if they tell DWP that their condition has worsened.56 Written evidence from Sense highlighted, however, that 43% of claimants with complex disabilities do not have their needs met through DWP’s communications, even when they had shared their preferences with DWP.57 Overpayments
Government Response Summary
The government commits to introducing a safeguarding approach to build trust and challenge misconceptions. It plans to implement the Health Transformation Programme, including an optional online PIP service, to improve customer experience and make it easier for people with health conditions to report changes.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 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. 5.3 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. 5.4 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.