Universal Credit: Fraud
The question
To ask the Secretary of State for Work and Pensions, what recent assessment his Department has made of the accuracy of fraud and error detection systems used in Universal Credit administration.
Answered by Andrew Western
Over the last year, we have seen a statistically significant decrease in the Universal Credit overpayment rate from 12.4% to 9.7% of expenditure - this represents a 21% fall in the overpayment rate, equivalent to £1.7bn in terms of FYE 2025 Universal Credit expenditure. This compares to the Universal Credit overpayment peak of 14.7% of expenditure in FYE 2022.
On Wednesday 26 November the Office for Budget Responsibility also published an updated Universal Credit fraud and error forecast which shows the rate of Universal Credit overpayments is expected to drop to 7.5% of Universal Credit expenditure by 2028/2029.
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