26 March 2004
MPs questioned the credibility of the social security system this week with figures showing that one in five benefit decisions is either wrong or contains errors.
The Public Accounts Committee said the level of mistakes made by the Department for Work and Pensions was 'astounding'. The department managed to get just over half of decisions on Disability Living Allowance correct and only 62% for the main benefit, Income Support. The department deals with 230,000 appeals a year and lost over half for disability allowance and 38% overall in 2002/03.
The report, published on March 25, said there was no conclusive evidence that the accuracy of the department's decision-making had improved since 1998 when new reforms were implemented.
The department was also criticised for its communications, with some claimants only finding out that benefits had been withdrawn when payments were refused. The department cited computer problems that had prevented notification letters from being sent. It also claimed that improving the clarity of decision letters would require costly IT changes.
The department was urged by the PAC to implement recommendations on standards in decision-making first made by auditor general Sir John Bourn in 2002.
'Striking' variations in decisions on those eligible for benefits was also highlighted. The committee questioned whether low levels of referrals, where cases are scrutinised, increased the risk of ineligible people getting benefit. Figures show that around 4% of Jobseekers' Allowance cases are referred in London, compared with 24% in the North West.
'It is astounding that one in five benefits decisions by the Department for Work and Pensions contains errors,' said committee chair Edward Leigh. 'This performance is simply unacceptable given the uncertainty and hardship it can cause.'
PFmar2004
