MPs on the Public Accounts Committee (PAC) said the level of fraud and error in benefits expenditure was ‘unacceptably’ high, with the DWP overpaying an ‘eye-watering’ £6.5bn in fraud payments.

During the pandemic, fraud and error rose to 'historic levels' across the benefits system, reaching an estimated 7.6% (£8.5bn) overpayment rate across all benefits, excluding the state pension in 2021-22, compared with 4.7% (£4.4bn) in 2019-20.

The DWP acknowledged that fraud and error levels remained too high and maintained that current levels were still due to Covid-19 but was unable to say when levels would fall. This was not helped as the DWP stopped most of the controls to prevent fraud and error at the start of the pandemic.