Universal Credit: Overpayments

Department for Work and Pensions written question – answered at on 15 September 2016.

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Photo of Stephen Timms Stephen Timms Labour, East Ham

To ask the Secretary of State for Work and Pensions, how much universal credit has been overpaid in each year since roll-out began; and how much of that overpayment has been recoverable.

Photo of Damian Hinds Damian Hinds The Minister of State, Department for Work and Pensions

The preliminary statistics for 2015-16 estimate the levels of fraud and error overpayments in Universal Credit at £36 million. These statistics are available in the public domain:

https://www.gov.uk/government/statistics/fraud-and-error-in-the-benefit-system-financial-year-201516-preliminary-estimates

Final 2015-16 statistics will be published in November 2016.

Due to the nature of the Universal Credit caseload over 2015-16 we do not expect these preliminary statistics to be representative of the eventual Universal Credit steady-state. This was the first time that levels of fraud and error have been measured for Universal Credit as it is a new benefit; we will learn lessons and consider additional strategies as appropriate.

When Universal Credit is fully rolled out, the government expects to save about £1bn each year through reduced fraud and error and increased ability to monitor changes in income.

All Universal Credit overpayments are recoverable.

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