Universal Credit claims under review by DWP for ‘incorrect payments’

Thousands of Brits could be protected from potential debt due to a change in benefit payments. The Department for Work and Pensions (DWP) has successfully blocked more than £1 billion in incorrect Universal Credit payments, a move aimed at preventing financial hardship among claimants.

This follows the Labour Government's intensified efforts to scrutinise payments since taking office last summer, with more than one million cases now examined. Incorrect payments can lead to debt for recipients.

This is why the 'Targeted Case Review' was launched in 2022 to identify and correct these errors, with approximately 25,000 claims reviewed in its inaugural year. As reported by the Daily Record, from July 2024, the DWP says it has substantially increased the workforce of its Universal Credit Targeted Case Review team to 6,000 members.

The Department has announced that this expansion has allowed for the review of over one million existing claims. Officials say this has thereby saved £1 billion by correcting past mistakes and averted future overpayments that could cause debt accumulation.

With the staffing goal now met, the DWP plans to further escalate the number of claim reviews, with the nearly 6,000-strong team projected to save £13.6 billion by 2030, according to officials. Minister for Transformation, Andrew Western, commented to say: "This target could not have been reached without this significant boost to staffing numbers - meaning we now have forecasted savings of £13.6 billion by 2030.

"This is a vital programme not only ensuring overpayments are corrected but also makes certain people who are being underpaid receive the money they are entitled to. We will not tolerate fraud, error or waste and are committed to safeguard taxpayers' money so it can be invested in the public services we all deserve."

The 'Targeted Case Review' team examines payments to prevent customers from falling into or accumulating further debt, the DWP says. It also aims to identify unreported changes in circumstances, corrects claims retrospectively, and refers suspected cases of fraud for investigation.

Reviews verify claimants' eligibility for the benefits they receive by sending a notification to their online account to request proof of identity and other documentation. In the Autumn Budget, the Labour Government committed to continuing Targeted Case Review activity for a further two years, using the findings to try to prevent error from entering the welfare system in the first place.

The aim is to provide a fair, high-quality service that ensures customers receive their full entitlement and avoid unnecessary debt. These developments come as the UK Government outlines further plans to strengthen its ability to reduce fraud and error through the Public Authorities (Fraud, Error and Recovery) Bill.

The DWP stated: "This is alongside its work to support people into work and become less reliant on the benefit system to drive productivity and unlock growth as part of its Plan for Change."