Social Security: Fraud and Error
What recent estimate he has made of the level of fraud and error in the social security system.
Overall levels of fraud and error are the lowest since the pandemic at 3.2%, compared with the peak of 4.3% in financial year end 2022. That reduction of a quarter demonstrates sustained progress with our fraud and error measures. Building on that success, we have set a new ambition to reduce the rate to 2.8% by 2028-29, which would be the lowest cross welfare overpayment rate since tax credits were introduced in 2003.
In Scotland, benefit fraud has effectively been decriminalised; the number of prosecutions is vanishingly small. Given that the Department for Work and Pensions continues to have a role in Scotland—administering some benefits, despite devolution—what can the Department do to tackle fraud there? It is happening here, and we have a two tier system in Scotland.
If the hon. Gentleman has specific concerns about how benefits are being administered and fraud is being investigated through the powers of the Scottish Parliament, I would very much appreciate it if he could write to me. In some instances, the way in which the Department and our Scottish Government counterparts will be investigating fraud means that we are now teed up to intervene at an earlier stage, where a number of the issues can be less serious. We can detect and act at a much earlier stage. That is beneficial in reducing fraud and for claimants.