DWP Expands Targeted Benefit Crackdown to Include Pension Credit
The Department for Work and Pensions has announced it is expanding its targeted case reviews to a second major benefit, Pension Credit, as part of a broader crackdown on fraud and overpayments. This move follows the Labour Party government's new fraud powers and legislation, which grant the DWP enhanced authority to review claims and access financial data.
Enhanced Powers and Targeted Benefits
Under the new legislation, the DWP will have the power to compel banks to hand over financial details, access accounts, and even seize cash when necessary. The targeted case reviews focus on the three benefits with the highest rates of fraud, error, and overpayment: Universal Credit, Employment and Support Allowance, and now Pension Credit.
These reviews involve DWP officials checking claimants' details to ensure they are up to date and that payment amounts are correct. The initiative aims to prevent incorrect payments and recover overpayments, contributing to significant taxpayer savings.
Significant Savings and Future Projections
A DWP spokesperson highlighted the success of the Targeted Case Review program, stating that it has already saved taxpayers £1 billion by blocking incorrect Universal Credit payments. The program is projected to save an additional £1.2 billion in the 2030-31 fiscal year.
With the extension to Pension Credit, the DWP estimates savings of £500 million from 2026 to 2029. This expansion is part of a strategic effort to address long-standing issues in the social security system, leveraging insights gained from the Universal Credit reviews to identify and mitigate fraud and errors.
Expert Insights and Recommendations
Gareth Davies, head of the National Audit Office, acknowledged the DWP's progress in tackling benefit overpayments but emphasized that there is still work to be done. He noted that the increased funding and focus on prevention in the coming years will be crucial for the program's success.
Davies urged the government to carefully consider the challenges and recommendations outlined in recent reports to build on the progress made so far. The DWP's targeted approach aims to ensure that benefits are paid correctly, protecting public funds and supporting those in genuine need.
