DWP blocks £1bn Universal Credit incorrect payments

More than £1 billion in incorrect Universal Credit (UC) payments have been blocked by the Department for Work and Pensions (DWP) in a drive to stop people falling into financial difficulties.

The milestone was reached after a programme to review payments was ramped up last summer, with more than one million cases now looked at. Overpayments can ultimately lead to financial difficulties for claimants by causing them to fall into debt.

The ‘Targeted Case Review’ was introduced in 2022 to detect incorrect payments, with around 25,000 claims reviewed in the first year. Since July 2024, DWP has nearly doubled the number of people working in its UC Targeted Case Review team. This significant increase in staff has boosted the number of existing claims reviewed to over one million, saving £1 billion in incorrect payments by detecting historic errors and preventing future overpayments that can result in debts accruing.

The number of claim reviews will continue to ramp up now the department has reached its staff target, with nearly 6,000 staff to review claims, with forecasted savings of £13.6 billion by 2030.

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 ‘Targeted Case Review’ team reviews payments  to prevent customers falling into or accumulating further debt, identify unreported changes in circumstances, correct claims retrospectively, and refer suspected cases of fraud for investigation.

“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.”

In the Autumn Budget, the government committed to the continuation of Targeted Case Review activity for a further two years, with learnings used to prevent error from entering the welfare system in the first place. This will help provide a fair, high-quality service that ensures customers receive their full entitlement and avoid unnecessary debt.

These major milestones come as the government outlines further plans to strengthen our ability to reduce fraud and error through the Public Authorities (Fraud, Error and Recovery) Bill. 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.