DWP Blocks £1bn in Incorrect Universal Credit Payments

The Department for Work and Pensions (DWP) has stopped more than £1 billion in incorrect Universal Credit payments, aiming to protect claimants from falling into financial difficulty. This milestone was achieved through an expanded payment review initiative launched by the UK Government last summer, with over one million claims already checked.

Overpayments can leave claimants struggling with debt, which is why the Targeted Case Review programme was first introduced in 2022. In its first year, around 25,000 claims were reviewed. Since July 2024, the DWP has nearly doubled the workforce dedicated to this task, with around 6,000 staff now reviewing cases. This expansion has enabled the department to examine over a million claims, prevent £1 billion in errors, and correct both past and future mistakes before they escalate into serious financial problems.

With the full team now in place, the DWP expects the number of checks to rise further, forecasting total savings of £13.6 billion by 2030, according to the Daily Record.

Andrew Western, Minister for Transformation, stated:
“This achievement would not have been possible without the significant increase in staffing. It has not only helped us prevent overpayments but also ensured those who were underpaid receive what they are due. We remain committed to tackling fraud, error, and waste so taxpayers’ money can go towards the public services we all rely on.”

What is a Targeted Case Review?

The Targeted Case Review team examines claims to:

• prevent customers from falling into debt,

• identify unreported changes in circumstances,

• retrospectively correct mistakes, and

• refer suspicious cases of fraud for investigation.

Claimants are contacted through their online accounts and may be asked to provide proof of identity and other documents to confirm their eligibility.

In the Autumn Budget, the Labour Government pledged to extend the Targeted Case Review programme for another two years. Lessons learned will also help reduce errors before they enter the welfare system, ensuring a fair service that pays claimants their rightful entitlement while avoiding unnecessary debt.

This progress is part of wider government measures to strengthen fraud prevention, including the forthcoming Public Authorities (Fraud, Error and Recovery) Bill. Alongside this, the DWP continues to focus on supporting people into employment, reducing reliance on benefits, and contributing to economic growth through its Plan for Change.