11

DWP assumes a 5% annual increase in societal fraud propensity based on external data.

Recommendation
We asked DWP to clarify why it assumes in its forecast that there is an ongoing increase in the general propensity to commit fraud in society. DWP explained that this is a judgement based on estimates produced by a range of other bodies. These include Cifas which has reported an 11% increase in fraud against organisations, the Public Sector Fraud Authority which identifies a 7% increase in fraud outside tax and welfare, and the Office for National Statistics that reports in its crime survey that 41% of all crimes are related to fraud. DWP told us it believes that, on the basis of these comparators, it is appropriate to assume that there will be a general increase in fraud of 5% per year. It also observed that the Office for Budget Responsibility was comfortable with building this assumption into its spring 2023 outlook.19
Government Response

A response document is linked to this report, dated 8 March 2024. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 2.8 yrs
Report published 06 Dec 2023