DWP reaches 'milestone' after blocking £1bn in Universal Credit payments

The Department for Work and Pensions (DWP) has blocked more than £1 billion in incorrect Universal Credit payments in a major drive to prevent people from falling into financial hardship. Around 7.5 million Brits receive this all-in-one benefit, which cost the taxpayer £67 billion last year.

The landmark figure was achieved following an intensified programme to scrutinise Universal Credit payments, which was accelerated by the UK Government after it assumed office last summer, with over one million cases now examined.

Excessive payments can ultimately cause financial hardship for benefit claimants by leading them into debt and a lengthy struggle to repay. The 'Targeted Case Review' was launched in 2022 to identify erroneous payments, with approximately 25,000 claims scrutinised in its first year.

Since July 2024, the DWP has almost doubled its Universal Credit Targeted Case Review workforce to 6,000 personnel as ministers attempt to lower error in the benefits system.

The Department stated this substantial staffing increase has enhanced the number of existing claims examined to exceed one million, securing £1 billion in incorrect payments by identifying historical mistakes and preventing future overpayments that can lead to mounting debts.

The volume of claim assessments will continue to escalate now the department has achieved its staffing objective, with nearly 6,000 personnel reviewing claims and projected savings of £13.6 billion by 2030, reports the Daily Record.

Minister for Transformation Andrew Western recently 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 'Targeted Case Review' team examines payments to stop customers from falling into or building up additional debt, spot unreported changes in circumstances, rectify claims retrospectively, and pass on suspected fraud cases for investigation.

Reviews check claimants' eligibility for the benefits they claim by sending a notification to their online account requesting proof of identity and other documentation.

In the Autumn Budget, the Labour Government pledged to continue Targeted Case Review activity for another two years, with insights used to stop error from entering the welfare system initially.

The goal is to help deliver a fair, high-quality service that ensures customers get their full entitlement and avoid unnecessary debt.

These significant milestones come as the UK Government sets out additional plans to bolster its capability to cut fraud and error through the Public Authorities (Fraud, Error and Recovery) Bill. The DWP stated: "This is alongside its work to support people into work and become less reliant on the benefit system to drive productivity and unlock growth as part of its Plan for Change."