Department for Work and Pensions Accounts 2021-22
Public Accounts Committee
Closed
Inquiry
The Committee will question senior officials at the Department for Work and Pensions on how they managed benefits and employment support in the second year of the pandemic – including current levels of fraud and error in benefits payments - and ongoing efforts to address major delivery issues like the …
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15
Recommendations
16
Conclusions
1
Report
1
Oral session
1
Event
Activity timeline 3 events
24 Feb
2023
2023
9 Nov
2022
2022
20 Jul
2022
2022
Oral evidence
Oral evidence sessions 1 session
20 Jul 2022
View on parliament.uk
Department for Work and Pensions Accounts 2021-22
Bozena Hillyer · Department for Work and Pensions
Elizabeth Fairburn · Department for Work & Pensions
Neil Couling CBE · Department of Work and Pensions
Peter Schofield · Department for Work and Pensions
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Twenty-Sixth Report - The Department for Work and Pensions’ Acco… | HC 44 | 9 Nov 2022 | 31 | Response document linked |
Recommendations & Conclusions
31 results
2
Recommendation
Twenty-Sixth Report - The Departme…
The Department risks allowing high levels of fraud and claimants disengaging with its compliance processes...
The Department risks allowing high levels of fraud and claimants disengaging with its compliance processes to become normal. The Department has repeatedly claimed that there is an increasing propensity to fraud in society in general since the pandemic. It believes …
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HM Treasury
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3
Recommendation
Twenty-Sixth Report - The Departme…
The success of the Department’s strategy to bring down fraud and error is dependent on...
The success of the Department’s strategy to bring down fraud and error is dependent on highly uncertain assumptions. The Department has set out its strategy to tackle fraud and error in Fighting Fraud in the Welfare System. This includes a …
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HM Treasury
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4
Recommendation
Twenty-Sixth Report - The Departme…
The Department has not set out in sufficient detail how it will assess whether it...
The Department has not set out in sufficient detail how it will assess whether it is achieving what it wants from its investment in fraud prevention measures. We have previously found that the Department lacks the ability to demonstrate that …
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HM Treasury
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5
Recommendation
Twenty-Sixth Report - The Departme…
The Department’s lack of transparency over its use of data analytics risks eroding public trust...
The Department’s lack of transparency over its use of data analytics risks eroding public trust in the benefit system. The Department’s strategy to bring down fraud and error will depend increasingly on the use of data analytics and machine learning …
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HM Treasury
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6
Recommendation
Twenty-Sixth Report - The Departme…
The Department’s efforts to correct the systemic underpayment of State Pension are too slow to...
The Department’s efforts to correct the systemic underpayment of State Pension are too slow to meaningfully put things right. The Department now estimates that 237,000 pensioners have been underpaid a total of £1.46 billion in their State Pension. Despite these …
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HM Treasury
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1
Conclusion
Twenty-Sixth Report - The Departme…
On the basis of a Report by the Comptroller and Auditor General (C&AG), we took...
On the basis of a Report by the Comptroller and Auditor General (C&AG), we took evidence from the Department for Work & Pensions (the Department) on its 2021–22 Annual Report and Accounts and the level of fraud and error in …
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HM Treasury
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7
Conclusion
Twenty-Sixth Report - The Departme…
We challenged the Department to explain why benefit fraud remained so high and had not...
We challenged the Department to explain why benefit fraud remained so high and had not yet returned to pre-pandemic levels. The Department could not tell us when it expected fraud and error to return to pre-pandemic levels, nor could it …
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HM Treasury
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8
Conclusion
Twenty-Sixth Report - The Departme…
We have repeatedly recommended that the Department should set targets for fraud and error reduction...
We have repeatedly recommended that the Department should set targets for fraud and error reduction across the benefits it administers, most recently as part of our examination of the Department’s 2021–22 Annual Report and Accounts.12 In its response the Department …
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HM Treasury
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9
Recommendation
Twenty-Sixth Report - The Departme…
We asked the Department when it expected to be able to set a target for...
We asked the Department when it expected to be able to set a target for reducing fraud and error. It referred to its letter to the Committee of May 2022 and reiterated it still did not believe that it was …
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HM Treasury
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10
Conclusion
Twenty-Sixth Report - The Departme…
The Department has repeatedly linked the high level of benefit fraud since the pandemic to...
The Department has repeatedly linked the high level of benefit fraud since the pandemic to an increase in the propensity to commit fraud in society more generally. It told us “there is no doubt” that underlying fraud in society is …
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HM Treasury
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11
Conclusion
Twenty-Sixth Report - The Departme…
The Department’s fraud and error statistics show that the biggest growth area for Universal Credit...
The Department’s fraud and error statistics show that the biggest growth area for Universal Credit overpayments in 2021–22 was claimants ‘failing to provide evidence or engage with the process’. This category applies to cases where the claimant had given up …
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HM Treasury
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12
Conclusion
Twenty-Sixth Report - The Departme…
We asked the Department whether it had considered explanations for failure to engage other than...
We asked the Department whether it had considered explanations for failure to engage other than deliberate dishonesty, such as concern about the impact on employment or housing if a claimant appeared to under investigation. It stressed that the labelling of …
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HM Treasury
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13
Recommendation
Twenty-Sixth Report - The Departme…
We asked the Department how it ensured that vulnerable claimants were taken into account, in...
We asked the Department how it ensured that vulnerable claimants were taken into account, in particular when it uses data analytics and machine learning. The Department told us that it was considering and testing for vulnerability “at every stage”.23 It …
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HM Treasury
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14
Conclusion
Twenty-Sixth Report - The Departme…
We observed that some claimants may struggle to understand the Department’s communications and use its...
We observed that some claimants may struggle to understand the Department’s communications and use its services. We questioned the Department on how it might improve its customer service to make it easier for claimants to engage, especially where they have …
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HM Treasury
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15
Conclusion
Twenty-Sixth Report - The Departme…
In May 2022 the Department published its strategy to reduce fraud and error following the...
In May 2022 the Department published its strategy to reduce fraud and error following the pandemic, which is set out in Fighting Fraud in the Welfare System. The three main strands of this are:26 • £613 million investment in counter-fraud …
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HM Treasury
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16
Conclusion
Twenty-Sixth Report - The Departme…
We questioned the Department on the challenges it may face in implementing its strategy.
We questioned the Department on the challenges it may face in implementing its strategy. The Department told us that it will achieve the planned increase in frontline counter-fraud staff to 9,500 full-time equivalents by July 2022. It explained that its …
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HM Treasury
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17
Conclusion
Twenty-Sixth Report - The Departme…
We have previously recommended that the Department should communicate to Parliament what additional powers or...
We have previously recommended that the Department should communicate to Parliament what additional powers or changes to legislation it needed to improve controls on specific fraud and error risks.30 The Department set out the new powers it believes it requires …
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18
Recommendation
Twenty-Sixth Report - The Departme…
During our examination of the Department’s 2020–21 Annual Report and Accounts we concluded that the...
During our examination of the Department’s 2020–21 Annual Report and Accounts we concluded that the Department was taken by surprise by the significant increase in the levels of Universal Credit fraud attributed to misreporting of self-employment earnings during the pandemic.33 …
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HM Treasury
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19
Recommendation
Twenty-Sixth Report - The Departme…
We have previously found that the Department lacks the ability to demonstrate that its counter-fraud...
We have previously found that the Department lacks the ability to demonstrate that its counter-fraud activities are having the intended impact and are cost-effective. As part of our inquiry into the Department’s 2019–20 Accounts, we recommended that the Department needed …
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HM Treasury
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20
Conclusion
Twenty-Sixth Report - The Departme…
We asked the Department how long it would be before it could set a target...
We asked the Department how long it would be before it could set a target for fraud and error reduction. It told us that it could not say when it would have enough clarity 32 Qq 70–72 33 Committee of …
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HM Treasury
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21
Conclusion
Twenty-Sixth Report - The Departme…
The Department told us it had included numbers in its Annual Report and Accounts for...
The Department told us it had included numbers in its Annual Report and Accounts for the savings from its efforts to reduce fraud and error. The Department’s 2021–22 Annual Report included an estimate for the impact of its activities to …
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HM Treasury
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22
Recommendation
Twenty-Sixth Report - The Departme…
As part of our previous examination of the Department’s 2019–20 Accounts, we recommended that the...
As part of our previous examination of the Department’s 2019–20 Accounts, we recommended that the Department should monitor and report any discrimination or bias caused by using artificial intelligence and machine learning on different claimant groups.41 In its response to …
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HM Treasury
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23
Recommendation
Twenty-Sixth Report - The Departme…
We asked the Department about the degree of transparency that the public can expect to...
We asked the Department about the degree of transparency that the public can expect to have about how its data analytics and machine learning tools will work. The Department told us that this was a “challenging balance”. It cautioned that …
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HM Treasury
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24
Recommendation
Twenty-Sixth Report - The Departme…
The Department explained that, in order to manage the risk of unintended bias in the...
The Department explained that, in order to manage the risk of unintended bias in the use of data analytics to identify fraud, it ensured that there was always meaningful human involvement in decision-making, and that it undertook ‘fairness analysis’ to …
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HM Treasury
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25
Conclusion
Twenty-Sixth Report - The Departme…
We examined the Department’s systemic underpayment of State Pension in January
We examined the Department’s systemic underpayment of State Pension in January
HM Treasury
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26
Conclusion
Twenty-Sixth Report - The Departme…
By the publication of its Annual Report & Accounts in July 2022 the Department estimated...
By the publication of its Annual Report & Accounts in July 2022 the Department estimated that 237,000 pensioners had been underpaid around £1.46 billion. This is an increase of 105,000 pensioners and £429 million compared with its best estimate as …
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HM Treasury
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27
Recommendation
Twenty-Sixth Report - The Departme…
In January 2021 the Department launched an exercise to review around 400,000 cases ‘at risk’...
In January 2021 the Department launched an exercise to review around 400,000 cases ‘at risk’ of underpayment to confirm the extent of the issue and reimburse affected pensioners. The Department wrote to us in May 2022 explaining that it was …
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HM Treasury
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28
Recommendation
Twenty-Sixth Report - The Departme…
In our January 2022 report we were concerned that the Department had not given people...
In our January 2022 report we were concerned that the Department had not given people who were worried that they had been underpaid enough information to find out what they should do, and that there was a risk that many …
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HM Treasury
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29
Conclusion
Twenty-Sixth Report - The Departme…
In our January 2022 report, we warned that, given the nature of underpayments identified, there...
In our January 2022 report, we warned that, given the nature of underpayments identified, there was a risk that similar, unidentified errors existed in the State Pension caseload.60 In 2021–22 the Department identified several new groups of pensioners potentially affected …
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HM Treasury
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30
Recommendation
Twenty-Sixth Report - The Departme…
The NAO reported that the Department cannot rule out that there may be further groups...
The NAO reported that the Department cannot rule out that there may be further groups of pensioners, as yet unidentified, that have been affected by a historic underpayment. It concluded that this was in large part because the Department had …
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HM Treasury
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31
Conclusion
Twenty-Sixth Report - The Departme…
We have previously concluded that the Department had been relying on a State Pension payment...
We have previously concluded that the Department had been relying on a State Pension payment system that is not fit for purpose for decades, and recommended that it consider ways to upgrade its IT systems as a matter of urgency.66 …
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