Benefit System: Fraud, Error and Debt Statistics 2025-26

Andrew Western Excerpts

Thursday 14th May 2026 Written Statements

[The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)]

The annual statistics for fraud and error in the benefit system for the financial year ending 2026, were published on Thursday 14 May 2026, at 9.30 am.

Universal credit overpayments have now dropped to the lowest level since the pandemic, at 8.5%. This is below both pre-pandemic levels and the OBR forecast of 9.1% for this year. It is also a significant drop of 42% from the record level of 14.7% in financial year 2022, showing the Government are committed to driving down fraud and error.

Today’s figures confirm continued progress to drive down fraud and error, with the overall rate of overpayments at 3.2%, or £9.9 billion,, for 2025-26, compared with 3.3%, or £9.4 billion, in 2024-25. This shows we are on track to meet the OBR forecast of 2.8% in 2028-29, which would be the lowest rate since tax credits were first introduced in 2003.

Overpayments due to fraud stand at 2.2%, claimant error at 0.6% and official error at 0.4%. The total rate of benefit expenditure underpaid in financial year 2026 stands at 0.4%.

This Government made a manifesto commitment that it will safeguard taxpayers’ money and not tolerate fraud or waste anywhere in public services. With welfare benefits paid to 24.3 million people, the welfare system is a deliberate target for both organised crime groups and opportunistic individuals. That is why we continue to take robust action and to strengthen our ability to drive out fraud and error, wherever it occurs. From investigating and prosecuting fraudsters where appropriate to supporting customers to make sure their claims are correct. This will ensure that support goes to those who need it most, and that the right people are paid the right amount, at the right time.

Through recent Budgets, this Government have committed to deliver savings of £14.6 billion up to the end of 2030-31. This will be delivered through a suite of measures, including periodic redeclaration reminding universal credit claimants of the requirement to confirm any change in circumstances, continuing to check accuracy of UC claims at risk of being incorrect through targeted case reviews and, building on the success of TCR, reviewing pension credit claims that are at risk of being incorrect through pension credit case review.

As part of this wider action, the Public Authorities (Fraud, Error and Recovery) Act received Royal Assent on 2 December 2025 and is estimated to deliver benefits of £2.1 billion by 2030-31. Powers contained within the Act will help address overpayments in the social security system, be tough on criminals, fair for claimants and will safeguard public money by reducing public sector fraud and error. Measures also allow the more effective recovery of moneys owed to Government and help spot and stop errors by requiring banks and other financial institutions to share data with DWP. This will help identify any potential overpayments earlier and avoid claimants getting into debt.

Today we have also published our unfulfilled eligibility statistics following reclassification in 2024 from customer error underpayments. Unfulfilled eligibility measures how much a customer could have been eligible for had they told us their correct circumstances. The total unfulfilled eligibility rate in financial year 2026 was 1.2%, or £3.7 billion, compared with 1.3%, or £3.7 billion, in financial year 2025.

The Department will report more on both overpayments and underpayments in its annual report and accounts, which are due to be published in July 2026.

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