DWP issues £27 Universal Credit update | Personal Finance | Finance
Taxpayers have been spared a £1bn bill for Universal Credit error thanks to a major crackdown by the Department for Work and Pensions (DWP).
The savings result from a dramatic increase in reviews of benefit claims, with more than one million cases scrutinised to detect incorrect payments – including fraud, errors and overpayments. The savings to date equate to around £27 for every one of the UK’s estimated 37.4m taxpayers.
Officials say the savings are just the beginning. With nearly 6,000 staff now dedicated to examining claims, the department forecasts savings of £13.6 billion by 2030 – equivalent to about £363 per taxpayer.
The department’s initiative, known as the Targeted Case Review, was introduced in 2022 and dramatically stepped-up last summer. Since then, the DWP has almost doubled the number of staff working in the review team, boosting its capacity to uncover historic mistakes and prevent future overpayments.
According to the DWP, overpayments can push claimants into debt when money is reclaimed – with the review designed to prevent these situations by spotting errors early.
A spokesperson said the reviews “verify claimants’ eligibility for the benefits they receive by sending a notification to their online account to request proof of identity and other documentation.”
The Minister for Transformation, Andrew Western, said: “This target could not have been reached without this significant boost to staffing numbers – meaning we now have forecasted savings of £13.6 billion by 2030.
“This is a vital programme not only ensuring overpayments are corrected but also makes certain people who are being underpaid receive the money they are entitled to.
“We will not tolerate fraud, error or waste and are committed to safeguard taxpayers’ money so it can be invested in the public services we all deserve.”
The scheme, however, is not just about rooting out incorrect payments. The DWP says it also ensures people who may be underpaid are identified and helped, offering wider support and signposting where necessary.
A government spokesperson added that reviews can also “identify unreported changes in circumstances, correct claims retrospectively, and refer suspected cases of fraud for investigation.”
The government has committed to extending the Targeted Case Review by another two years following the Autumn Budget, while a new Public Authorities (Fraud, Error and Recovery) Bill aims to bolster the powers needed to recover public money and reduce losses in the welfare system.
Since July 2024, the DWP has recruited an additional 2,500 staff to hit its target of 5,930 dedicated claim reviewers.
Officials are keen to stress that the process is not a fraud investigation, but rather a correction of claims, designed to protect both claimants and the taxpayer.
Mr Western added: “We will not tolerate fraud, error or waste… so [money] can be invested in the public services we all deserve.”
