Social Security Benefits: Fraud

Department for Work and Pensions written question – answered at on 23 May 2024.

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Photo of David Davis David Davis Conservative, Haltemprice and Howden

To ask the Secretary of State for Work and Pensions, if he will make an estimate of how much monies his Department expects to recover via the powers in Clause 128 of the Data Protection and Digital Information Bill for fraud related to (a) the Attendance Allowance, (b) Universal Credit, (c) the State Pension, (d) the Personal Independence Payment, (e) the Disability Living Allowance, (f) carers allowance, (g) housing benefit, (h) child benefit and (i) pension credit as (i) an annual sum and (ii) as a proportion of overall estimated fraud for each of those.

Photo of Paul Maynard Paul Maynard The Parliamentary Under-Secretary of State for Work and Pensions

Whilst the power covers all benefits to ensure we are empowered to address fraud and error wherever it arises, the Impact Assessment makes clear that we initially intend to use the power for Universal Credit, Employment Support Allowance, Pension Credit and Housing Benefit (passported from Pension Credit). DWP can also only exercise this power in relation to benefits for which DWP is responsible.

The Third-Party Data Measure is estimated to save up to £600m by 2028/29. This was certified by the Office for Budget Responsibility (OBR) during the Autumn Statement 2023 and updated for the Spring Budget 2024. This is based on the initial use of the power which includes savings from the four benefits outlined above and the pilot period. Further information about the methodology can be found in the published impact assessment (DWP_third_party_data_impact_assessment_november_2023.pdf (publishing.service.gov.uk)).

The table below shows savings are split by each of benefit and that we are testing the measure. Estimates of these savings as a proportion of overall estimated fraud for each of these benefits is not available as the AME savings modelled are not directly comparable to the Monetary Value of Fraud and Error.

£m

2025-26

2026-27

2027-28

2028-29

Total

ESA

£5

£18

£52

£41

£116

HB (passported from PC)

£4

£11

£14

£29

PC

£7

£26

£78

£103

£214

UC

£5

£23

£79

£126

£233

Note: figures may not sum due to rounding

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