DWP reports £11.1 billion incorrect benefit payments in 2025 to 2026

The Department for Work and Pensions has published its annual fraud and error report, revealing that incorrect payments across the benefits system totaled £11.1 billion in the financial year ending April 2026. The figures show £9.9 billion was overpaid, while £1.2 billion was underpaid.

The overall rate of incorrect payments fell to 3.2 percent of total benefit spending, the lowest level since the pandemic. Total benefit expenditure reached £308.6 billion, supporting approximately 24.3 million people. Officials stated that overpayments occur due to fraud, claimant error, and official error, with fraud accounting for £6.8 billion of the overpaid amount.

Universal Credit remained the largest source of overpayments in monetary terms, with £6.72 billion incorrectly paid. The overpayment rate for the benefit was 8.5 percent. Fraud related to earnings, employment, and living together rules represented more than six in ten fraud-related overpayments for Universal Credit. Its underpayment rate was 0.4 percent, valued at £350 million.

Personal Independence Payment experienced a statistically significant increase in its overpayment rate, which rose to 2.3 percent, worth £660 million. The...