Twenty-Sixth Report - Department of Work and Pensions Accounts 2019-20

The government agrees and will report both the total level of fraud and error, and the specific impact of COVID-19 control easements, in its Annual Report and Accounts for 2020–21, with a target implementation date of July 2021.

The government accepts the recommendation, stating it has explored options for new legislative powers through a cross-government function and is developing non-legislative measures. It commits to bringing any proposed legislative changes to Parliament for scrutiny.

The government accepts the recommendation and commits to providing additional information in its annual report and accounts, detailing different debt recovery options, sums attributable to each method, and outstanding debt stock.

The government accepts the recommendation, committing to using financial data to identify vulnerable customers, implementing the 'Breathing Space' policy in 2021, and analyzing root causes of underpayments. An update will be provided by Spring 2021.

The government agrees and states the recommendation is implemented, explaining that the Department has learned from its successful response to the pandemic and has strengthened capability, implemented a three-wave plan, and developed strategies for future surges.

The government states it has already implemented measures to prepare for future surges in benefit claims, detailing its flexible response to the pandemic, staff redeployment, and a three-wave plan to increase capacity and manage demand.

The government agrees with the committee's recommendation to set annual targets for fraud and error, committing to publish a target for 2021-22 following detailed sampling work to establish a baseline after the COVID-19 pandemic, and will consider lower-level targets.

The government agrees with the associated recommendation, committing to report both the total level of fraud and error in the benefit system, distinguishing the impact of control easements from other COVID-19 impacts, and assessing the cost-effectiveness of controls in its Annual Report and Accounts for 2020-21 by July 2021.

The government accepts the implied recommendation to report on the impact of control easements and the pandemic on fraud and error, stating it is working to separate and set out these impacts in the Annual Report and Accounts.

The government agrees with the associated recommendation, committing to report both the total level of fraud and error in the benefit system, distinguishing the impact of control easements from other COVID-19 impacts, and assessing the cost-effectiveness of controls in its Annual Report and Accounts for 2020-21 by July 2021.

The government accepts the recommendation and commits to reporting the impact of the pandemic and its control easements on Universal Credit losses in the Annual Report and Accounts, distinct from existing fraud and error levels.

The government agrees to monitor and report on the impact and cost-effectiveness of its fraud and error initiatives and new technology, confirming benefit realisation plans are in place to track outcomes and commit to addressing potential bias in its approaches.

The government agrees to monitor and report on the impact and cost-effectiveness of its fraud and error initiatives and investment in new technology, which aligns with the department's stated aim to achieve cost-effective controls and avoid qualified accounts.

The government agrees with the associated recommendation, committing to track the effectiveness of new technologies, use a Data Science Ethics Framework to address bias in machine learning, and provide an update on how it uses data to tackle loss in the annual report and accounts by July 2021.

The government agrees to monitor and report on the impact and cost-effectiveness of its fraud and error initiatives and new technology, confirming benefit realisation plans are in place to track outcomes and commit to addressing potential bias in its approaches.

The government agrees with the committee's observation on transaction risking, stating it has benefit realisation plans for this and other digital technologies within the new Fraud, Error and Debt Portfolio, with updates to be provided in annual reports.

The government agrees with the committee's observation on capital fraud, detailing ongoing efforts to explore new legislative powers for accessing bulk tax information from financial institutions and developing non-legislative measures like open banking to improve counter fraud activity.

The government response outlines its existing mechanisms for tracking the effectiveness of new technologies, monitoring fraud and error, and developing a Data Science Ethics Framework to address potential bias in predictive models.

The government acknowledges the committee's observation and confirms it is actively exploring options for new legislative powers and developing non-legislative measures to improve counter-fraud activity, through a cross-government function.

The government agrees with the committee's observation and commits to providing additional information in its annual report and accounts by July 2021, detailing different recovery options for overpayments, sums attributable to each method, and outstanding debt stock.

The government agrees with the committee's concerns regarding debt recovery, outlining current reductions in Universal Credit deduction limits, new online repayment tools (Repay My Debt), increased automation, and developing data analytics, while also committing to providing more recovery data in its annual report.

The government agrees to address the concerns regarding vulnerable claimants, outlining actions such as identifying vulnerable customers using financial data, committing to the 'Breathing Space' policy due in 2021, and analyzing fraud and error root causes.