Monetary Value of Fraud and Error target - cutting fraud and error

Target: reduce losses from Fraud and Error by 15% by March 2010.

What is this target?

The DWP Public Service Agreement aim is to reduce losses from fraud and error in Income Support and Jobseeker's Allowance by 15% by March 2010, through a consistent approach to programme protection.

The new target for 2007-08 is:

By March 2008, to ensure that losses from fraud and error in working age Income Support and Jobseeker's Allowance amount to less than current levels of loss as expressed in the new 2005-06 baseline. The baseline information is expected to be available in Summer 2007.

The causes of loss are:

• mistakes made by staff;
• mistakes made by customers; and
• customer fraud.

How does it work?

A random sample of Income Support and Jobseeker's Allowance claims are checked by specialist teams. This check may include a home visit to establish the precise circumstances of the claim.

The results of these checks are used to estimate both the proportion and the cash value of fraud and error in the payment of Income Support and Jobseeker's Allowance.

The interim September 2006 loss estimate suggests losses are 5.3% (610m). DWP analyst’s advice caution in the interpretation of the data, as the change is not statistically significant and using six months from two different years gives rise to some volatility. We will have greater certainty when the full 2006/07 data is early in 2008.