6th Report - DWP Customer Service and Accounts 2023-24

Select Committee
Public Accounts Committee HC 354 31 January 2025
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Conclusions & Recommendations 38 items (7 recs)
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Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Sixth report from Session 2024-25 · published 6 May 2025
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Recommendations & Conclusions

38 results
2 Recommendation
Set out expected timelines for achieving 75% target for new PIP claims processing.
Recommendation
DWP processes only around half of new PIP claims on time against a target for 75% of claims to be processed within 75 working days. DWP’s performance in processing new claims on time varies significantly between benefits, with claimants of … Read more
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3 Conclusion
Gather data to understand diverse customer experiences and act to improve support services.
Conclusion
DWP does not understand well enough the experience of vulnerable customers and customers with additional or complex needs. DWP’s customers have a wide range of vulnerabilities and additional or complex needs due to poverty, age, health problems and disabilities. DWP … Read more
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4 Recommendation
Set out monitoring and mitigation strategies for cultural change risks in service modernisation.
Recommendation
Realising the benefits of service modernisation will require strong leadership to embed cultural change within DWP and its outsourced providers. DWP’s Service Modernisation Programme is an 11–year organisation-wide programme estimated to cost £312.1 million, running from 2022–23 to 2032–33, which … Read more
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5 Conclusion
Over £4 billion in benefit underpayments in 2023-24 increases financial hardship risks.
Conclusion
Benefit claimants received over £4 billion less than they were entitled to in 2023–24, increasing the risk of financial hardship for the people losing out. DWP estimates that claimants received 1.6% (£4.2 billion) less than they were eligible for in … Read more
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23 Recommendation
Set out plans to build claimant trust and simplify reporting changes of circumstances.
Recommendation
These underpayments leave the claimants affected with less money than they should have, making their finances more precarious than they should be. Underpayment rates are highest for disability benefits, such as PIP and Disability Living Allowance, where the most common … Read more
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6 Recommendation
Set out use of additional £110 million funding for counter-fraud to reduce overpayments.
Recommendation
Excluding State Pension, £9.5 billion of benefit expenditure was overpaid in 2023–24 and DWP did not achieve its savings target from Targeted Case Reviews. Excluding State Pension, DWP estimates that it overpaid a total of 6.7% (£9.5 billion) in 2023–24, … Read more
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7 Conclusion
Share fairness impact assessment results for machine learning to reassure against unfair claimant treatment.
Conclusion
We remain concerned about the potential negative impact on protected groups and vulnerable customers of DWP’s use of machine learning to identify potential fraud. The previous Public Accounts Committee repeatedly raised concerns about the impact of data analytics and machine … Read more
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1 Conclusion
DWP customer service and benefit expenditure fraud and error examined.
Conclusion
On the basis of two reports by the Comptroller and Auditor General (C&AG), we took evidence from the Department for Work & Pensions (DWP) on its customer service and on its 2023–24 accounts, in particular on the level of fraud … Read more
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8 Conclusion
Differences in call performance between in-house and outsourced DWP lines reflect query complexity.
Conclusion
DWP also told us that the difference in performance between in-house and outsourced lines reflected the type of work they handled. It said that it used outsourced providers to deal with simpler transactions and calls, while its in-house lines dealt … Read more
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9 Conclusion
ESA claimants moving to Universal Credit expected to see improved call waiting times.
Conclusion
We asked DWP whether some of the long call waiting times, such as for ESA claimants, would have significantly improved by next year. DWP told us that it wanted to reduce waiting times but it was having to deal with … Read more
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10 Conclusion
DWP's declining timeliness in processing new benefit claims increases financial hardship
Conclusion
A failure to process claims and pay benefits in a timely way can mean claimants wait longer for money they are entitled to, increasing the risk of financial hardship and making it more difficult for them to manage their finances … Read more
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11 Conclusion
DWP's processing timeliness varies significantly, with poor performance for PIP claims
Conclusion
DWP’s performance in processing new claims on time varies significantly between benefits, after taking account of its different timeliness standards for different benefits, which reflect the nature and complexity of each benefit. In 2023–24, DWP processed 84% of UC claims … Read more
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12 Conclusion
Disabled people experience significant difficulty and negative impacts from benefit application process
Conclusion
Written evidence from Sense highlighted that disabled people’s experiences of the benefit system were often negative due to issues with the design of the system and how DWP communicates. In May 2024, Sense commissioned a survey of 1,000 people with … Read more
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13 Conclusion
DWP attributes mixed claims processing timeliness to ongoing, gradual modernisation efforts
Conclusion
We asked DWP to explain its mixed performance in the timeliness with which new benefit claims are processed. DWP told us that it was undertaking a programme of modernisation, which bit by bit was building the modern service that everyone … Read more
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14 Conclusion
Significant improvement in PIP claim processing timeliness not expected until 2029
Conclusion
We pressed DWP on when we would see a marked improvement in the timeliness with which new PIP claims are processed.23 DWP pointed towards the Health Transformation Programme as its long-term solution to providing a modern and timely service for … Read more
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15 Conclusion
DWP prioritises support for vulnerable customers with trained staff and specialist leads
Conclusion
Some of DWP’s customers are vulnerable or have additional or complex needs due to poverty, age, health problems and disabilities.28 DWP told us that supporting these customers was a key priority and that it sought to put the right support … Read more
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16 Conclusion
DWP uses AI for written vulnerability screening, plans phone system for equivalent identification
Conclusion
DWP also told us that it had been using artificial intelligence to scan customers’ written communications for words and phrases that could indicate vulnerability so that it could provide support quickly. In subsequent correspondence, it highlighted that this technology solution … Read more
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17 Conclusion
Disabled claimants require significant external support to navigate inaccessible benefit applications
Conclusion
Written evidence from Sense highlighted findings from a survey of claimants with complex disabilities–49% of those surveyed reported that they could not apply for benefits without the support of friends, family or a support service. Sense recommended that DWP should … Read more
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18 Conclusion
DWP under-utilises customer survey data to understand experiences of diverse claimant groups
Conclusion
Since 2019 DWP has contracted Ipsos to undertake a regular customer experience survey.36 We asked DWP whether it could track customer satisfaction for customers with disabilities or additional needs. DWP said it had done some analysis of its customer experience … Read more
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19 Conclusion
DWP's extensive Service Modernisation Programme faces significant delivery and cultural change risks
Conclusion
DWP recognises that significant parts of its services remain largely unmodernised. Its Service Modernisation Programme is an 11-year organisation-wide programme, estimated to cost £312.1 million and running from 2022–23 to 2032–33, which is seeking to deliver benefits for customers, staff … Read more
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20 Conclusion
DWP faces daunting and complex challenges in modernising its services and legacy IT systems.
Conclusion
DWP told us that the scale of the challenge involved in service modernisation was daunting for a variety of reasons. It highlighted the complexity of what it did, the size of its operations, issues relating to its legacy IT systems … Read more
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21 Conclusion
Cultural change represents the hardest aspect of DWP's service transformation programmes.
Conclusion
DWP acknowledged that cultural change can be the hardest part of any transformation programme. It told us that this requires leadership to help people understand the change that is coming, why the change is a good 35 Qq 19-20 36 … Read more
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22 Conclusion
DWP monitors cultural change through embedding values, seeking feedback, and partner engagement.
Conclusion
We asked DWP how it would monitor whether it was achieving the necessary cultural change, including within its outsourced services such as health assessments. DWP referred us to three areas of focus–embedding its values throughout the organisation; getting feedback and … Read more
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24 Conclusion
DWP's financial statements qualified for 36th consecutive year due to material fraud and error.
Conclusion
Benefit payments may be incorrect due to deliberate fraud, either by individuals or by organised crime groups, or unintended error by claimants or by DWP or another part of government. The C&AG qualified his opinion on the regularity of DWP’s … Read more
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25 Conclusion
Claimants received £4.2 billion less in benefits due to official error and unfulfilled eligibility.
Conclusion
DWP estimates that claimants received 1.6% (£4.2 billion) less than they were eligible for in 2023–24, up from 1.5% (£3.5 billion) in 2022–23. These underpayments comprised £1.1 billion in official error and £3.1 billion in unfulfilled eligibility.49 Official error is … Read more
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26 Conclusion
Underpayment rates for disability benefits remain highest, often due to unreported worsening conditions.
Conclusion
Underpayment rates are highest for disability benefits. In 2023–24, the unfulfilled eligibility rate for Disability Living Allowance was 11.1% (£750 million) and for Personal Independence Payment was 4.0% (£870 million). The most common reason for underpayments is customers failing to … Read more
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27 Conclusion
Significant proportion of DWP customer calls remain unanswered, affecting change of circumstances.
Conclusion
Many customers contact DWP by telephone when they need to report a change of circumstances.54 However, a significant proportion of calls to DWP go unanswered. In 2023–24, DWP answered 66% of calls to its in–house lines, after taking account of … Read more
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28 Conclusion
Most underpayments stem from claimants with health conditions not reporting worsening circumstances.
Conclusion
DWP confirmed that most underpayments stemmed from people with health conditions not informing DWP when their condition had deteriorated. It acknowledged that it needed regularly to encourage people to come forward about changes of circumstances and make it easy for … Read more
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29 Conclusion
DWP overpaid £9.5 billion in benefits, with fraud accounting for the majority of overpayments.
Conclusion
Excluding State Pension, DWP estimates that it overpaid a total of 6.7% (£9.5 billion) of benefit expenditure in 2023–24, up from 6.6% (£8.2 billion) in 2022–23.58 Fraud—where DWP considers that a claimant should reasonably have been aware that they were … Read more
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30 Conclusion
DWP's Targeted Case Reviews fell short of expected UC fraud and error savings.
Conclusion
DWP set out its current plan to tackle fraud and error in its strategy Fighting Fraud in the Welfare System, published in May 2022. Its initiatives include a programme of Targeted Case Reviews to verify around 8 million existing UC … Read more
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31 Conclusion
DWP attributes missed Targeted Case Review savings target to a temporary 'blip'.
Conclusion
DWP said that missing its savings target was not a cause for concern, describing it as “a blip” caused by a change in its approach to implementing the Targeted Case Reviews due to wider pressures in the Department. In 2023–24, … Read more
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32 Conclusion
Government announces major funding, staff, and powers to combat DWP fraud and error.
Conclusion
In the 2024 Autumn Budget, the government announced it would increase funding for DWP’s counter fraud and error activities by £110 million in 2025–26, hire an additional 3,000 DWP fraud and error staff, and introduce new legislative powers for DWP … Read more
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33 Conclusion
DWP details plans for new funding to increase fraud reviews and claimant checks.
Conclusion
We asked DWP what the extra funding would achieve in terms of reduced fraud. It told us that it would be doing more Targeted Case Reviews and more of its business-as-usual work on counter fraud and compliance. It would also … Read more
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34 Conclusion
DWP seeks new Fraud Bill powers to access bank data on UC claimant savings.
Conclusion
DWP also highlighted the importance of access to data, particularly because one of the big areas of UC overpayments related to people who had savings that they did not tell DWP about. It said that some of the powers in … Read more
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35 Conclusion
DWP dissatisfied with slow reduction in UC overpayments despite forecast improvements and efforts.
Conclusion
DWP pointed us to the Office for Budget Responsibility’s statement forecasting welfare trends alongside the 2024 Autumn Budget, which showed overpayments in UC returning to below pre–pandemic levels in the 63 Qq 55-56 64 Autumn Budget 2024, para 4.109 65 … Read more
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36 Recommendation
DWP uses machine learning for fraud, but with limited transparency on fairness assessment.
Recommendation
DWP is implementing machine learning techniques to help it identify fraud in benefit expenditure. It has one machine learning model in operation, for new UC advance claims, alongside several others in development.69 The previous Public Accounts Committee raised concerns about … Read more
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37 Recommendation
Public Law Project warns of bias and transparency risks in DWP's machine learning for fraud.
Recommendation
However, written evidence we received from the Public Law Project raised a series of risks around DWP’s use of machine learning to tackle fraud. In particular, it noted the risk of machine learning taking on human biases when it was … Read more
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38 Recommendation
DWP commits to further assurance on fairness of machine learning techniques for benefits.
Recommendation
We stressed that we would like to be satisfied that DWP’s use of machine learning is fair and consistent. DWP highlighted its main safeguard, which is that it would never stop benefit payments to a customer due to an AI … Read more
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