15

DWP lacks clarity on spending over £2 billion fraud funding and new powers’ costs

Conclusion
The Department did not make clear how it planned to use the remainder of the available funding, which amounts to over £2 billion. It indicated that it expected to spend some money implementing the new powers it has acquired through the Public Authorities (Fraud, Error and Recovery) Act 2025 but did not say how much this would cost. The Department also told us that it planned to employ a ‘test and learn’ approach in tackling fraud and error, with an expectation that successful measures should deliver a return on investment in excess of 3:1.28 24 C&AG’s Report (overpayments), paras 12, 21 25 Q 8 26 C&AG’s Report (overpayments), paras 3.27, 3.28 27 Q 8; Letter from DWP to the Public Accounts Committee dated 1 December 2025 28 Q 8 11 Data sharing between government departments
Government Response

A response document is linked to this report, dated 7 April 2026. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.6 yr
Report published 11 Feb 2026