Committee publication · Correspondence · 21 May 2026

Letter from the Chair to the Permanent Secretary at the Department of Work and Pensions relating to Treasury Minute – Tackling fraud and error in benefit expenditure 2024-25, 21 May 2026

Inquiry: Tackling fraud and error in benefit expenditure 2024-25

Summary

The Chair of the Public Accounts Committee (PAC) thanks the Department of Work and Pensions (DWP) for its response to a February 2026 report on fraud and error in benefit spending, but identifies three areas requiring greater assurance. The letter seeks clarification on whether a 2.8% overpayment rate is genuinely the lowest achievable, specific actions to tackle official error, and concrete plans for data-sharing with the Department for Education to verify household composition.

Key findings

DWP acknowledged plans to evaluate the 'Tell DWP' communications campaign's impact on claimants' reporting behaviour and publish results.
DWP committed to six-monthly updates to the Committee on Carer's Allowance cases affected by inaccurate departmental guidance.
On recommendation 1: DWP cited need to agree with the National Audit Office on cost-effective control standards; the 2.8% overpayment rate forecast does not reflect new measures. PAC seeks clarity on whether 2.8% represents the lowest achievable rate.
On recommendation 2: DWP's response on official error root causes was brief and generic; PAC requires specific actions to reduce official error, with progress in the 2025-26 annual report.
On recommendation 4: DWP referenced cross-government data standards initiatives but provided no specific plan to engage with Department for Education on household composition verification for Universal Credit.

Tone

Procedural

Topics

public-financebenefit-fraudgovernment-controlsdata-sharing

Key actors

Sir Geoffrey Clifton-Brown MP, Sir Peter Schofield KCB, Comptroller and Auditor General, Department of Work and Pensions, Department for Education, National Audit Office, Office for Budget Responsibility, Treasury Officer of Accounts

Notable line

“The Committee is looking for the Department to continue to improve its processes and controls, and is keen for the ultimate ambition to be a stretching one.”

Key Quotes

“The Committee is looking for the Department to continue to improve its processes and controls, and is keen for the ultimate ambition to be a stretching one.”
— Sir Geoffrey Clifton-Brown MP · On the acceptability of the 2.8% overpayment rate as a target

“The Committee is interested in official error since reducing this is largely within the Department's own control.”
— Sir Geoffrey Clifton-Brown MP · Explaining focus on recommendation 2 regarding official error

“… we expect to see progress to at least 2.8% or lower in order that 36-year qualification of the annual report and accounts can be ended.”
— Sir Geoffrey Clifton-Brown MP · Following discussions with the Comptroller and Auditor General regarding audit qualification

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Source · parliament.uk record ↗