Tackling benefit overpayments due to fraud and error

To improve its approach to tackling overpayments in the welfare system, DWP should finalise its approach to implementing its fraud and error strategy and use cross-departmental governance arrangements to advance delivery and monitor progress. DWP?s approach should consider how its main interventions are expected to contribute to achieving its objectives and a timetable for delivery. DWP should update on progress in its 2025-26 annual report and accounts.

To improve its approach to tackling overpayments in the welfare system, DWP should progress the work it has started on reviewing its controls framework and use its detailed findings to strengthen the framework, removing or improving ineffective controls and prioritising those which prevent overpayments in the most cost-effective way.

To improve its approach to tackling overpayments in the welfare system, DWP should improve data quality by: ? getting its data about benefit claimants into a common format; and ? continuing to engage with cross-government data standards and ensuring DWP alignment with these.

To improve its approach to tackling overpayments in the welfare system, DWP should build on its existing use of data analytics to explore how emerging technologies may help to detect and prevent fraud and error, taking account of cost?effectiveness.

To improve its approach to tackling overpayments in the welfare system, DWP should progress its ambition to reduce the overpayment rate to the pre-pandemic level. Beyond that, DWP should focus on getting the overpayment rate down to a level that represents a cost-effective control environment. DWP should develop its evidence base on cost-effectiveness and target its activities accordingly.

To improve its approach to tackling overpayments in the welfare system, DWP should extend those detection and prevention activities which currently focus on UC to encompass other benefits where this is appropriate and cost-effective, in particular building on activity underway in Pension Credit, which had the highest rate of overpayments in 2024-25.