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Fraud and Error in the Benefit System
15 May 2025
Type
Written Ministerial Statement
Department
Department for Work and Pensions
At a Glance
Issue Summary
The statement discusses the annual statistics for fraud and error in the UK benefit system for the financial year ending 2025.
Action Requested
The government is committed to reducing overpayments through measures such as additional resourcing for the Verify Earnings and Pension Service, new verification measures for capital and self-employed income, and the Public Authorities (Fraud, Error and Recovery Bill). The bill aims to deliver £1.5bn in benefits over five years by reducing public sector fraud and error.
Key Facts
- Annual statistics for Fraud and Error in the Benefit System were published on May 15, 2024.
- Overpayments rate is now 3.3% (£9.5bn) for 2024/25 compared to 3.6% (£9.7bn) last year.
- Total underpayment rate was 0.4% (£1.2bn) in FYE 2025, up from 0.4% (£1.1bn) last year.
- The Government has committed £9.6bn in scored savings out to 2029/30 through various measures including additional resourcing for the Verify Earnings and Pension Service.
- Public Authorities (Fraud, Error and Recovery Bill) is estimated to deliver benefits of £1.5bn over five years.
- Unfulfilled eligibility rate was 1.3% (£3.7bn) in FYE 2025 compared with 1.2% (£3.1bn) last year.
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