The Department for Work and Pensions (DWP) has confirmed a full list of six benefits currently under review, issuing an ominous warning to claimants. The welfare department is intensifying efforts to combat fraud and error, which have contributed to a ballooning welfare bill.
Fraud and Error Rates Decline
Peter Schofield, the DWP chief, has highlighted “further progress” in reducing fraud and error. Across all benefits, the estimated fraud and error rate for the financial year ending 2026 stands at 3.2% (£9.9 billion), down from 3.3% (£9.4 billion) in 2025. Schofield told MPs that the department is “on the right trajectory” to meet its 2028-29 target on overpayments.
Benefits Under Review
The DWP data covers fraud and error on six specific benefits: Universal Credit, state pension, Housing Benefit, Pension Credit, Personal Independence Payment (PIP), and Disability Living Allowance (DLA). These benefits are being “reviewed,” according to department terminology.
Target to Reduce Overpayments
Schofield stated: “We forecast that the total overpayment rate will reduce to 2.8% by 2028-29 – the lowest cross‑welfare rate since tax credits were first introduced in 2003.” He added that the statistical update “shows that we are on the right trajectory to achieving this ambition.” The DWP crackdown even outperformed the Office for Budget Responsibility’s forecast, which anticipated the rate would remain flat at 3.3% for the year.
Post-Pandemic Fraud Concerns
The DWP has previously warned that an “increasing propensity for fraud in society” since the pandemic has led to a permanent rise in dishonest claims. However, the department now aims to bring the overpayment rate down to 2.8% of all benefits, a historic low.
Criticism from Public Accounts Committee
The Public Accounts Committee previously argued that the DWP’s target was not “stretching” enough. In response, the DWP said that achieving the 2.8% target would be a “remarkable achievement” and “well in excess of previous expectations of the committee.”
DWP Spokesman Statement
A DWP spokesman said: “We are determined to tackle fraud and error in the system, and at just 3.2% the overall rate is at its lowest since the pandemic. Our new Fraud Act gives us tough new powers to go after cheats and claw back taxpayers’ money – including accessing new data from banks to help find incorrect payments.” He added: “We’ve also secured a number of high-profile recent convictions of people committing PIP and Universal Credit fraud – proof our sustained efforts are working.”
