Source · Select Committees · Public Accounts Committee
Recommendation 34
34
Not Addressed
DWP seeks new Fraud Bill powers to access bank data on UC claimant savings.
Conclusion
DWP also highlighted the importance of access to data, particularly because one of the big areas of UC overpayments related to people who had savings that they did not tell DWP about. It said that some of the powers in the planned Fraud, Error and Debt Bill would give it the ability to ask banks to let it know of situations in which someone on UC has more than a certain amount of savings. DWP told us that this situation would not automatically stop benefit payments but would highlight lines of inquiry for its investigators.66
Government Response Summary
The government agrees and states the recommendation is implemented, but its response details increased funding and staff for general counter-fraud activities and Targeted Case Reviews, without specifically addressing the committee's observation regarding powers in the planned Fraud, Error and Debt Bill to access bank data about Universal Credit claimants' savings.
Government Response
Not Addressed
HM Government
Not Addressed
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.