DWP agrees to set target for benefit underpayments

Sun,7 August 2016
News Benefits

The Chair of the Work and Pensions Committee, Frank Field MP, has welcomed the DWP's change of heart on a target for benefit underpayments.

In its December 2015 report on benefit delivery, the Committee recommended that the DWP should introduce a target to reduce underpayments to less than 0.5% per cent of expenditure by the end of this Parliament.

However, in its response to the report the Government rejected this recommendation.

But in a letter to Mr Field last week, the DWP's Permanent Secretary Robert Devereux said: 

“While the Department rejected these recommendations in the past, I have subsequently reflected on this and concluded that we can and should introduce a global target for underpayments, to complement existing operational targets.”

He added that he had asked relevant teams in DWP to produce a recommendation for the level of such a target with the aim to have this completed by the end of September 2016.

Welcoming the DWP’s change of mind, Frank Field said:

"Benefit underpayments can cause unnecessary hardship. We have been concerned that they have been neglected by the Department and have been calling for a target. We therefore welcome this U-turn. We will monitor progress closely."

The National Audit Office found that of £1.8billion was underpaid by the DWP last year.

The estimated 2015/16 figure equates to 1% of all benefit spending and is up from £1.4billion in the previous year.

For more information see http://www.parliament.uk/business/committees/committees-a-z/commons-select/work-and-pensions-committee/news-parliament-2015/benefit-underpayments-letter-16-17/