DWP ‘sluggish’ over benefit errors
Iain Duncan Smith’s department is failing to address errors in the benefits system worth £1.1 billion, a spending watchdog has found.
The National Audit Office’s (NAO) head Amyas Morse said the Department for Work and Pensions (DWP) faced a “significant challenge” in dealing with customer errors – and had not demonstrated it was doing anything about it.
Four years have passed since the DWP launched a strategy for tackling error. Since there there has yet been sufficient attention paid to reducing losses due to customer mistakes, the report found.
“The department has demonstrated a firm commitment to tackling administrative error, while its resolve to tackle customer error has so far been less evident,” Mr Morse said.
“It now needs to bring its focus on customer error to the same level. The key to success in each area is a coherent strategy supported by good information on what works to deliver the best results.”
The DWP estimates it lost £1.1 billion in 2009/10 because of overpayments to benefits claimants caused by ‘customer error’ – mistakes made by claimants when filling in benefits forms.
It failed to pay out £800 million in underpayments to claimants, causing unnecessary hardship for the families affected.
A lack of information on the part of DWP officials appears to be at the heart of the problem, the report states.
There is not enough consistently measured data on the costs and benefits of its interventions, the NAO points out. The DWP does not know whether any patterns exist which would help it target its interventions better.