Source · Select Committees · Public Accounts Committee
Recommendation 8
8
Rejected
Universal Credit system complexity contributes to incorrect claims despite ongoing simplification efforts.
Conclusion
We asked DWP to what extent the fact that 1 in 3 Universal Credit claims is incorrect is a result of the complexity of the system. DWP told us it is trying to make it easier for claimants to declare changes of circumstances through continuous improvements of the Universal Credit system. It gave as an example where it has made changes to simplify the process for claimants to declare their level of savings. DWP added that Universal Credit underpayments are relatively low, which it believes is a result of bringing together legacy benefits.14
Government Response Summary
The government rejects the committee's implied criticism regarding system complexity, stating it is committed to reducing fraud and error but acknowledges external trends impacting fraud levels are not directly in its control.
Government Response
Rejected
HM Government
Rejected
1.1 The government disagrees with the Committee’s recommendation. 1.2 The Department for Work and Pensions (the department) is fully committed to reducing fraud and error through operating a cost-effective control environment and continually enhancing the department’s controls framework to enable this. 1.3 The department set itself an Annual Managed Expenditure (AME) savings target of £1.3 billion in its 2022-23 Annual Report and Accounts and will provide an update on the performance against this target in the 2023-24 Annual Report and Accounts. 1.4 However, the wider external trends of increasing propensity for fraud in the economy, which impact on the level of fraud and error in the benefit system, are not directly in the department’s control. On this basis the department disagrees with the Committee’s recommendation.