24 January 2007 - New error drive to save £1billion
DWP Minister James Plaskitt today launched a drive to reduce money lost to customer and official error in the benefit system which is expected to save £1billion by 2012.
This is the first comprehensive strategy to tackle this issue. ‘Getting Welfare Right: Tackling Error in the Benefits System’ maps out the Department’s blueprint to significantly reduce incorrect benefit payments by identifying and correcting existing errors, and preventing new errors entering the system.
Plans include a review of Pension Credit benefit payments to eradicate existing errors. Work of this kind has already been successful. Since June 2006 dedicated action teams deployed to Jobcentre Plus offices have identified and corrected overpayments of around £745,000 a week.
Other measures include simplification of the benefit system so that it is easier to administer, and improved IT systems to enable faster data-sharing.
The drive also includes a pilot in Cambridgeshire to remind customers of their responsibility to declare any relevant changes in their lives.
Launching the pilot in Peterborough, James Plaskitt said:
“The vast majority of benefits are paid on time and to the right person. But we want to pay the correct amount of benefit to all of our customers every time. We have had great success in reducing benefit fraud. We now intend to apply the same drive and determination to reduce customer and official error.
“Our strategy for reducing error is based on prevention, compliance and correction: preventing new error, ensuring customers and staff comply with benefit rules, and identifying and correcting existing errors. Through this we expect to save £1billion by 2012.”
The customer error pilot, ‘Something to Declare’, will remind customers via adverts and posters that they must report any changes which might affect their benefits. A letter targeted at Income Support, Jobseeker’s Allowance and Housing Benefit customers will ask them to immediately declare any previous changes. The pilot will run initially for three months.
Notes to editors
- DWP Minister James Plaskitt today launched the customer error pilot and error strategy at Peterborough Jobcente Plus Business Delivery Centre.
- Peterborough has been chosen to pilot the new customer awareness campaign to help customers understand more fully the changes in their circumstances they need to report, as they happen, to ensure their benefits remain correct.
- Peterborough Jobcentre Plus Business Delivery Centre provides a high quality customer service and is at the forefront of our service delivery modernisation programme by being the first in the country to deliver full process centralisation at one place.
- The error strategy can be found at: www.dwp.gov.uk/publications/dwp/2007/error_strategy.asp
- People on benefits are required to inform the DWP of any changes in their
life that might affect their benefits, be it starting a job, earning extra
money or moving in with their partner. Other changes could include:
- Pay or working hours change (or partner’s pay or hours change)
- Child leaves school, education or training
- Savings go up or down (if they are more than £6,000)
- Start to receive child maintenance, or the maintenance paid changes
- Start or stop claiming another benefit or the amount received changes
- Move home, even for a short time
- Claim benefit because of a health condition or disability and health or condition changes.
- People can call 0845 608 8603 (textphone 0845 608 8617) to declare changes in their circumstances.
- Adverts in local press, direct mail and posters will be used in the ‘Something to Declare’ pilot in Peterborough, which runs for three months from 24th January 2007. Samples can be requested from the press office.
Media enquiries:
Darragh McElroy/Victoria Francis: 020 3267 5137/0
Press office: 020 3267 5144
Out of hours: 07659 108 883
Website: www.dwp.gov.uk