Source · Select Committees · Public Accounts Committee
Recommendation 32
32
Accepted
Government announces major funding, staff, and powers to combat DWP fraud and error.
Conclusion
In the 2024 Autumn Budget, the government announced it would increase funding for DWP’s counter fraud and error activities by £110 million in 2025–26, hire an additional 3,000 DWP fraud and error staff, and introduce new legislative powers for DWP to recover debt alongside requiring banks and financial institutions to undertake checks to identify incorrect benefit payments.64
Government Response Summary
The government reiterates its Autumn Budget 2024 announcements, confirming increased funding for counter fraud and error by £110 million in 2025-26, the deployment of 3,000 additional staff from April 2025, and the use of operational resources to periodically check Universal Credit claimant circumstances.
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.