Updated 04 February 2013
Fraud and error in the benefit system as a percentage of benefit expenditure
Indicator Description
This indicator measures the estimates of the levels of overpayment and underpayment, as a percentage of benefit expenditure, due to fraud and error across the benefit system. This indicator is measured using the Department’s National Statistics report on fraud and error in the benefit system (Great Britain). Data are published every 6 months (around May and November), each report covering a 12 month measurement period.
Generally a decrease in the indicator (outside of the 95% confidence intervals) will demonstrate that an improvement in reducing fraud and error in the benefit system has been achieved, but economic conditions and overall expenditure will also need to be taken into account.
Latest data – published 29 November 2012
The estimate for the percentage of total benefit expenditure overpaid in 2011/12 is 2.1%, which is the same when compared to the 2010/11 estimate and a decrease when compared to the 2009/10 estimate of 2.2%. This estimate has remained between 2.0% and 2.2% since 2005/06. There have been no statistically significant changes in the estimate of total benefit expenditure overpaid since 2005/6 and therefore the estimated percentage has remained level over time.
The net loss to DWP is less than the total overpayments, since DWP and Local Authorities identify and recover around £840m of overpayments each year.
The estimate for the percentage of total benefit expenditure underpaid in 2011/12 is 0.8%. This is the same as the estimate for 2010/11, but is a decrease when compared to the 2009/10 estimate of 0.9%. It is worth noting that this estimate has remained between 0.8% and 0.9% since 2005/06. There have been no statistically significant changes in the estimate of total benefit expenditure underpaid since 2005/6 and therefore the estimated percentage has remained level over time.
| Financial Year | Overpayments | Underpayments |
|---|---|---|
| 2011-12 (final) | 2.1% |
0.8% |
| 2010-11 (final) | 2.1% |
0.8% |
| 2009-10 (final) | 2.2% |
0.9% |
Specifically, the reports for the above tabled results can be found at:
