Fraud and Error in the Benefit System

Govt Newspeak

The Department for Work and Pensions pays welfare benefits to around 20 million people. ‘Fraud and Error in the Benefit System’ estimates how much money the
department incorrectly pays, either by paying people too much benefit – overpayments, or by not paying enough benefit – underpayments.

We calculate this as a percentage of the total amount of benefit we pay – expenditure. Overpayments and underpayments happen as a consequence of fraud; claimant error; and official error (processing errors or delays by DWP, a Local Authority, or Her Majesty’s Revenue and Customs).

The Department can recover overpayments from people so we can describe a figure which ‘nets off’ recoveries from overpayments – net loss. The estimates in this publication relate to reviews carried out October 2017 – September 2018
(except Personal Independence Payment reviews, which were carried out August 2017 – July 2018).

The rates found are then applied to the…

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