Background
In 2023-24, the Department for Work & Pensions (DWP) spent £268.5 billion on benefit and pension payments. Fraud and error in benefit expenditure is one of DWP’s most significant risks, with overpayments totalling £9.7 billion in 2023-24. Levels of fraud and error remain well above pre-pandemic levels.
In May 2022, DWP set out its approach to tackling fraud and error in its strategy Fighting Fraud in the Welfare System. Its approach includes undertaking Targeted Case Reviews of existing Universal Credit claims and using machine learning techniques to help identify potential fraud. DWP has set a target to achieve savings of at least £1.7 billion from its dedicated counter fraud and error resource in 2024-25.
Scope
Our study will look at whether DWP has an effective approach to tackling overpayments in the welfare system. We will examine whether DWP:
- has made the progress it expected in reducing overpayments due to fraud and error
- is well placed to reduce overpayments due to fraud and error going forwards
NAO team
Director: Laura Brackwell
Senior Audit Manager: Katie Taylor