The Department for Work and Pensions (DWP) pays benefits to around 23 million people across the UK and has released its latest ‘Fraud and Error in the Benefit System’ report which estimates how much money it incorrectly pays out, either by giving people too much benefit - an overpayment - or not enough - an underpayment.
The DWP explained that overpayments and underpayments happen as a consequence of Fraud, Claimant Error and Official Error - processing errors or delays by DWP, a Local Authority, or Her Majesty’s Revenue and Customs (HMRC).
One benefit the DWP looked at was P ersonal Independence Payment (PIP) and found an estimated £60 million in underpayments and £130 million in overpayments.