Source · National Audit Office

Tackling benefit overpayments due to fraud and error

Published: 22 Oct 2025 Recommendations: 6 Type: Value for Money Department: Department for Work and Pensions

This National Audit Office (NAO) report examines whether DWP has an effective approach to tackling overpayments in the welfare system.

Dept: Department for Work and Pensions Topics: BenefitsFraud and errorMoney and taxWork, welfare and pensions nao.org.uk →

Recommendations

6 items

Government response pending.

The NAO has not yet recorded a response to these recommendations. This report was published 22 October 2025.

Rec	Recommendation	Addressee	Acceptance	Implementation
1	To improve its approach to tackling overpayments in the welfare system, DWP should finalise its approach to implementing its fraud and error strategy and use cross-departmental governance arrangements to advance delivery and monitor progress. DWP?s approach should consider how its main interventions are expected to contribute to achieving its objectives and a timetable for delivery. DWP should update on progress in its 2025-26 annual report and accounts. Ref Page 11, 22a	Department for Work and Pensions	Pending	—
2	To improve its approach to tackling overpayments in the welfare system, DWP should progress the work it has started on reviewing its controls framework and use its detailed findings to strengthen the framework, removing or improving ineffective controls and prioritising those which prevent overpayments in the most cost-effective way. Ref Page 11, 22b	Department for Work and Pensions	Pending	—
3	To improve its approach to tackling overpayments in the welfare system, DWP should improve data quality by: ? getting its data about benefit claimants into a common format; and ? continuing to engage with cross-government data standards and ensuring DWP alignment with these. Ref Page 11, 22c	Department for Work and Pensions	Pending	—
4	To improve its approach to tackling overpayments in the welfare system, DWP should build on its existing use of data analytics to explore how emerging technologies may help to detect and prevent fraud and error, taking account of cost?effectiveness. Ref Page 11, 22d	Department for Work and Pensions	Pending	—
5	To improve its approach to tackling overpayments in the welfare system, DWP should progress its ambition to reduce the overpayment rate to the pre-pandemic level. Beyond that, DWP should focus on getting the overpayment rate down to a level that represents a cost-effective control environment. DWP should develop its evidence base on cost-effectiveness and target its activities accordingly. Ref Page 11, 22e	Department for Work and Pensions	Pending	—
6	To improve its approach to tackling overpayments in the welfare system, DWP should extend those detection and prevention activities which currently focus on UC to encompass other benefits where this is appropriate and cost-effective, in particular building on activity underway in Pension Credit, which had the highest rate of overpayments in 2024-25. Ref Page 11, 22f	Department for Work and Pensions	Pending	—

Public Accounts Committee follow-up

2 reports

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.

11 Feb 2026 Public Accounts C… 66th Report - Tackling fraud and error in benefit expenditure 2024-25 — 20 recommendations · parliament.uk

30 Jun 2021 Public Accounts C… Ninth Report - Fraud and Error — 18 recommendations · parliament.uk