Changes in the fraud and error in the benefit system: financial year 2023 to 2024 estimates: statistical notice
Statistical notice about changes to the way DWP will publish statistics about benefit underpayments and call for feedback.
Applies to England, Scotland and Wales
We published a further statistical notice on changes to the fraud and error in the benefit system statistics for the financial year 2023 to 2024 on 16 April 2024.
The external engagement closed on 29 February 2024.
The Department for Work and Pensions (DWP) publishes statistics on levels of fraud and error in the benefit system. These statistics are published in May of every year.
We review our statistics annually to ensure they are fit for purpose and hold the department to account against policy intent and legislation.
In this year’s review it was raised that the policy intent for receipt of benefits is that claimants need to engage with the department to receive the benefits they are entitled to. If a claimant does not engage, and so does not receive the benefit or full payment they are entitled to, then this should not be defined as an underpayment.
We have further confirmed that claimants who do not provide the full and correct evidence requested to support their entitlement, have no legal entitlement to that benefit or element of benefit payment. Therefore, there is no underpayment in law.
To reflect this position in our reporting on fraud and error in the benefit system publications we will no longer report on those cases we have defined as claimant error underpayments.
There remains an internal user need for statistics on underpayments as well as high public interest in this information, so we are developing a separate series to publish statistics on benefit underpayments.
The purpose of this engagement is to inform users of the methodology change and our intention to publish a new statistical series on benefit underpayments.
Removing claimant error underpayments
The fraud and error statistics are measured against legislation. This has been particularly important in terms of overpayments. When considering underpayments, the current methodology takes a broader view of underpayments and considers what the claimant could have been receiving if the evidence required was provided.
When assessing our current approach of measurement against the legislation and policy intent, this approach results in us classifying some things as underpayments which are not legally considered as errors or underpayments. The legislation sets out that in the case where a claimant has not provided correct and full information that when provided results in a beneficial change to their entitlement, there is no entitlement to benefit payment until the information has been provided to DWP.
We are therefore implementing a change that in these circumstances, we will no longer classify the correction that results from the information provided by the claimant as an underpayment.
Feedback
We welcome your feedback on this methodology change for our fraud and error statistics publication and the publishing of a new statistical series for underpayment information.
We also welcome general feedback on how you use our statistics.
How to reply
Provide comments on this change by 29 February 2024.
Send comments by email to caxtonhouse.femaenquiries@dwp.gov.uk
Or by post to:
Department for Work and Pensions
Statistics Services Division
BP5201 Benton Park View
Newcastle
NE98 1YX
What happens next?
We will make clear in the May 2024 publication the change in methodology. We will confirm all changes in advance of the publication via a statistical notice.