Fraud and error in the benefit system
Source: gov.uk (2025-05-15)

Estimates of fraud and error levels in the benefit system in Great Britain.

These statistical reports provide estimates of fraud and error for benefits administered by the Department for Work and Pensions (DWP) and local authorities.

Accompanying each estimate report, we also publish data tables that provide the user with detailed estimates by different types of fraud and error.

Statistical reports for the periods from 2006 to 2010 can be found in the National Archives (http://webarchive.nationalarchives.gov.uk/20130128102031/http://statistics.dwp.gov.uk/asd/asd2/index.php?page=fraud_error_arc).

Find future DWP fraud and error estimate release dates (https://www.gov.uk/government/statistics/announcements?utf8=%E2%9C%93&keywords=fraud&organisations%5B%5D=department-for-work-pensions).

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Changes to the latest release

The following changes are minor updates and corrections following a full methodological review. These changes have not impacted the global Fraud and Error estimates. FYE 2024 published figures have been restated to reflect these changes and allow for accurate comparisons to be made.

Further detail on these changes have been included in the Background Information and Methodology note that has been published alongside the financial year 2024 to 2025 estimates (https://www.gov.uk/government/statistics/announcements/fraud-and-error-in-the-benefit-system-financial-year-2024-to-2025-estimates).

Correction to incorrectness figures FYE 2024

In the FYE 2024 release, overpayments categorised as Not Reasonably Expected to Know on Disability Living Allowance (DLA) were incorrectly included in the incorrectness figures, overstating the proportion of DLA claims overpaid and the proportion of DLA claims that are incorrect. These overpayments are excluded from the FYE 2025 figures and the FYE 2024 figures have been re-stated.

Non-Causal Link errors were incorrectly excluded from a subset of cannot review cases which understated the overall incorrectness figures. These errors are included in the FYE 2025 figures and FYE 2024 figures have been re-stated.

Changes to New Case Factors

In the FYE 2024 benefit review process, the payment (and period) that the Official Error and the Claimant Error/Fraud check was carried out on was aligned for all benefits. To reflect this change, the New Case Factors have been aligned so that there is no difference to how they are carried out for Official Error and for Claimant Error/Fraud.

Living Together Fraud and Error Adjustments

Living Together Fraud and Errors are calculated by comparing the amount of benefit the claimant and the partner were getting before the review, to the amount they are eligible for post review. Where the claimant and the partner are on the same benefit, the claimant’s proportion of the start award is used to more accurately calculate the value of fraud/error attributable to the claimant.

Causal Link Non-Residency Fraud Adjustment

If during a review the claimant informs the department that they are no longer at the address, then it would be recorded as Causal Link Fraud since it is a change of circumstances reported due to the review. However, in some circumstances the claimant has no financial gain as their benefit was being paid directly to their landlord (which could be a private landlord, Housing Association or Local Authority depending on their accommodation). In these circumstances, the fraud has been re-categorised to Claimant Error.

Error Code Framework Adjustments

Following the annual review of the Error Code Framework there have been a small number of changes to the mapping of errors to error reason publication categories.

Change to Winter Fuel Payment Proxy Measure

Winter Fuel Payment (WFP) is now paid via passporting from Pension Credit, therefore, overpayments on WFP will only occur when the claimant is not entitled to Pension Credit. The proxy measure used to estimate levels of Fraud and Error on WFP has been changed to use the loss of entitlement rate on Pension Credit.