24 October 2008
By Tash Shifrin
The Department for Work and Pensions has conceded that benefit calculations are 'in need of further attention' after error levels doubled to reach £2bn in the past five years.
The DWP responded to a critical report from the Commons Public Accounts Committee, saying there was 'no evidence' that staff cuts had damaged its counter-fraud activities.
But it was forced to agree with the PAC, which had branded the error levels 'unacceptable' and noted that this had contributed to the qualification of the department's accounts for 19 years.
In a response released last week, the DWP said: 'There is no evidence that the department's successful efficiency drive has had a detrimental effect on the fight against fraud.'
But it added: 'The department agrees with the committee that, while fraud has been dramatically reduced, the level of error is in need of further attention.'
The DWP said its first comprehensive error reduction strategy, published in January last year, 'remains on course'.
The strategy was expected to deliver benefit savings of around £1bn between 2007 and 2012, the DWP added.
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