Despite the Department for Work and Pensions (DWP) still claiming that benefits fraud is still their biggest problem, the National Audit Office have discovered that benefits claimants in the UK were underpaid by a record £3.3 billion last year, the highest level on record. The figures cover a range of benefits from universal credit, personal independence payment, to pension credit.
The DWP also admitted that as many as 330,000 people, some of whom have since died, may have missed out on as much as £1.5bn of valuable state pension entitlement – a disclosure that prompted some commentators to warn of a new scandal. Steve Webb, the former pensions minister, said:
“The scale of these errors is huge. It is shocking that so many have been underpaid so much money. This makes it essential that things are put right as a matter of urgency.”
The DWP’s annual report and accounts for 2022-23 also disclosed that the national insurance records for 10 million people claiming universal credit have not been updated properly. The disclosures prompted Whitehall’s spending watchdog, the National Audit Office, to announce it had once again qualified the department’s accounts, meaning money has not been spent as it should have been. It said:
“This is the 35th year in which DWP’s accounts have been qualified due to material fraud and error.”
The personal independence payment (PIP) – which helps people deal with the extra living costs caused by long-term disability or ill health – is the benefit with the highest underpayment rate. However, in their defence the DWP claimed that the increase was mostly due to “claimant error” – for example, where an individual’s medical condition worsened but they did not inform the department.
The DWP and HMRC said that they were working together to find people affected and correct their records so they receive the correct amount of benefits. Later this year, HM Revenue and Customs (HMRC) will embark on an exercise to try to track down as many of those affected as possible. They told the Guardian newspaper.
“HMRC and DWP will correct the national insurance records and update state pension entitlement as quickly as possible.”
Oh, so that’s alright then?! The DWP submits financial records which are not maintained in accordance with Generally Accepted Accounting Principles (GAAP) and they don’t get so much as a smack on the wrist! Also, why is nobody remotely interested in where the £3.3 billion went?
Description of cartoon for those using screen reading software
A white male in a grey business suit and carrying a briefcase with HMRC is looking at a staff member of the DWP. Beside him is a safe with notes spilling out of the door. The HMRC man is saying: “ … and of course you’ll have a good explanation as to why there’s over £3 billion sitting in petty cash?!” The DWP man is thinking: “Oops!”
Crippen Cartoons 