Source · Select Committees · Public Accounts Committee
Recommendation 31
31
Accepted
DWP attributes missed Targeted Case Review savings target to a temporary 'blip'.
Conclusion
DWP said that missing its savings target was not a cause for concern, describing it as “a blip” caused by a change in its approach to implementing the Targeted Case Reviews due to wider pressures in the Department. In 2023–24, it had realised that it could not recruit the staff needed for Targeted Case Reviews alongside the extra work coaches and other staff required to administer the growth in benefits. It therefore decided to use a contracted route and had to divert some resources away from carrying out the reviews to set up that arrangement. It assured us that the Targeted Case Review approach was working and said that it was ahead of profile in generating savings in the current year and would be back on track for later years.63
Government Response Summary
The government accepts the recommendation, detailing plans to scale the Targeted Case Review to full capacity by March 2025, increase funding for counter fraud by £110 million in 2025-26, and deploy an additional 3,000 staff from April 2025 to identify and recover benefit overpayments, expecting full staffing by 2027-28.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Recommendation implemented 6.2 The department’s focus for Targeted Case Review (TCR) in 2023-24 was to continue to scale and stabilise a new operation that began testing in 2022-23. In adopting a hybrid resource model to reduce the impact on in-house operational resource, efforts were re-prioritised from iterating the service to make gains on productivity and hit rate to safely onboarding the commercial provider and safeguarding the future impact of TCR. TCR will be at full scale from March 2025. 6.3 As announced at Autumn Budget 2024, the government is increasing funding for counter fraud, error and debt activity by £110 million in financial year 2025-26. This investment is expected to deliver £178 million in savings to the taxpayer over the next financial year and lay the foundations for increased savings in later years – the Budget committed the department to total additional savings of £8.6 billion. 6.4 As a result of this investment, from April 2025, the department will begin progressive deployment of an additional 3,000 staff to identify and recover overpayments in the benefits system. This activity will save £78 million in 2025-26. The department expects the full 3,000 staff will be in role by 2027-28. 6.5 Alongside investment in frontline counter-fraud capability, the department will also begin deployment of additional operational resource to periodically ask Universal Credit claimants to confirm whether they have had a change in circumstances. This activity is expected to save £100 million in 2025-26. The department is also utilising funding to support evaluation of small-scale trials in Universal Credit, to test new and innovative means of preventing incorrect payments from occurring.