Recommendation 14

The proportion of UC overpaid was 12.8% (£5.5 billion) in 2022–23, down from 14.7% (£5.9 billion) in 2021–22 but still significantly above pre-pandemic levels.23 We have previously reported on the increasing levels of fraud and error and made recommendations to help the Department address the problem, including in our recent report on the Department’s 2022–23 Annual Report and Accounts.24 We questioned whether, given the high levels of fraud and error compared with the past, UC really is less prone to fraud and error compared with the legacy benefit systems.25 The Department told us that the use of real-time information in the context of UC had enabled it to eliminate fraud and error from earned income, while fraud and error from self-employed income was about £1 billion in 2022–23. It also said that fraud from childcare had reduced to virtually zero under UC.26 As in previous evidence sessions, however, the Department also stressed that there has been a general increase in the underlying propensity for people to commit fraud, which regardless of the systems under consideration, was driving up levels of fraud and error.27 22 Q 13; C&AG’s Report, paras 1.21–1.22 23 C&AG’s Report, para 1.23 24 Committee of Public Accounts, The Department for Work & Pensions Annual Report and Accounts 2022–23, Fourth Report of Session 2023–24, HC 290, 6 December 2023 25 Q 12 26 Qq 1, 13; C&AG’s Report, Report on Accounts: Department for Work & Pensions, July 2023, para 2.7 27 Qq 12, 38–39 Progress in implementing Universal Credit 13 2 Moving legacy benefit claimants to Universal Credit Proportion of people not moving to Universal Credit