People on State Pension or these five benefits could see claim reviewed before next April

The Department for Work and Pensions (DWP) pays State Pension and welfare benefits to around 22.7 million people across Great Britain. New figures published in the 2024 Fraud and Error in the Benefit System report, show that the total number of benefit overpayments over the last year was £9.7 billion (3.7%), an increase on the £8.3bn figure for 2023.

Similarly, the total rate of benefit underpayments last year was £1.1bn (0.4%), down from £1.2bn (0.5%) in 2023. The DWP said it is “vital that the Government continues to robustly tackle fraud to ensure support goes to those who need it most” adding that it is taking “further steps to minimise errors, ensuring the right people are paid the right amount at the right time”.

The DWP confirmed in the report that during the current financial year it will measure a sample of claims from five specific benefits and the State Pension as part of its fraud and error exercise for 2024.

DWP fraud and error review financial year ending 2024

The DWP will be measuring sample claims of the following benefits for fraud and error:

• Universal Credit

• Housing Benefit (pension age, passported cases)

• Pension Credit

• State Pension

• Personal Independence Payment (PIP)

• Carer’s Allowance

How fraud and error is measured

DWP explains that a sample of benefit claims is randomly selected from its administrative systems (around 13,300 were sampled for FYE 2024, or 0.06% of all benefit claims). DWP’s Performance Measurement team then looks at the data held on the administrative systems and contacts claimants to arrange a review.

Claimants are asked to provide evidence such as tenancy agreements, bank account details and other information that could affect their benefit claim, as part of the review.

The claim is assessed to determine whether the benefit award is correct or not. If the claim is incorrect, the amount of money the claim is wrong by is calculated.

Errors on the claim are classified as one of the following:

• Fraud

• Claimant Error

• Official Error

Definitions of Fraud, Claimant Error and Official Error

The DWP defines the three types of fraud and error.

Fraud

Claims where all three of the following conditions apply:

• the conditions for receipt of benefit, or the rate of benefit in payment, are not being met

• the claimant can reasonably be expected to be aware of the effect on their entitlement

• benefit payment stops or reduces as a result of the claim review

Claimant Error

The claimant has provided inaccurate or incomplete information, or failed to report a change in their circumstances, but there is no evidence of fraudulent intent on the claimant’s part.

Official Error

The benefit has been paid incorrectly due to a failure to act, a delay or a mistaken assessment by DWP, a local authority or HMRC, to which no one outside of that department has materially contributed.