Committee publication · Correspondence · 8 January 2026
Letter from the Permanent Secretary at the Department for Work and Pensions relating to the Committee’s evidence session on 04 December on Tackling fraud and error in benefit expenditure 2024-25, 17 December 2025
From: Public Accounts Committee
Inquiry: Tackling fraud and error in benefit expenditure 2024-25
Summary
The Permanent Secretary of the Department for Work and Pensions responds to the Public Accounts Committee's December 2025 hearing on benefit fraud and error. He addresses two commitments: UC advances fraud data and external fraud referral processes. DWP estimates advances fraud reduced from £20m–£85m in 2021/22 to £0m–£60m in 2024/25, though precise measurement lacks a formal random enquiry programme. The department acknowledges the committee's concern about updating external fraud reporters and commits to exploring legislative possibilities.
Key findings
- UC advances fraud estimates have narrowed significantly: £20m–£85m (2021/22) down to £0m–£60m (2024/25), indicating improved controls but no formal random enquiry programme to measure exact proportions.
- DWP's machine learning model for UC advances directly prevented less than £5m in fraudulent claims over three years by rejecting ~7,000 high-risk requests, though broader control improvements suggest larger indirect prevention.
- DWP confirms receipt of public fraud referrals but currently cannot provide outcome updates to external reporters due to lack of lawful basis for third-party disclosure under legislation.
- Department confirms scheduled January meeting with Comptroller and Auditor General to discuss qualification of Annual Reports and Accounts given improved fraud and error figures.
- DWP committed to exploring what is possible within legislative confines to provide updates to external fraud referrers, recognising the committee's position on transparency.
Tone
ProceduralTopics
Key actors
Sir Peter Schofield, Department for Work and Pensions, Public Accounts Committee, Sir Geoffrey Clifton Brown, National Audit Office, Comptroller and Auditor General
Notable line
“… model, which was discussed at the PAC, has directly saved less than £5.0m over the last 3 years …”
Key Quotes
“… we do not have a formal random enquiry programme in place to measure the exact proportion of advance requests that are fraudulent, so we cannot give precise statistics.”
“In 2024/25, we estimated that the level was in the range of £0m - £60m”
“Generally, we are not able to provide updates as there is no lawful basis to disclose this information to a third party.”
“However, we are sympathetic to the position set out in the hearing, so we will explore what is possible within the confines of the legislation.”
Source · parliament.uk record ↗