Universal Credit Could Lead To ‘Increased Risks Of Fraud And Error’, Say Work And Pensions Committee

It remains uncertain how DWP will manage the housing costs element of Universal Credit without increased risks of fraud and error, warns a Work and Pensions Committee report.

The Government has stated that an IT system (the Integrated Risk and Intelligence Service (IRIS)) will allow it to cross-check data and provide similar safeguards against fraudulent claims under Universal Credit as are currently operated by local authorities within the Housing Benefit system.

However, last year the National Audit Office (NAO) found that IRIS was “missing” from the UC Pathfinders, and it remains unclear how or when DWP will achieve automated access to the range of property data currently available to local authorities. The Committee concludes that such a system will need to be fully developed and tested before national implementation of Universal Credit commences.

Commenting on the report, the Chair of the Work and Pensions Committee, Dame Anne Begg MP, said:

“Through the use of RTI—real-time information on PAYE earnings—Universal Credit has the potential over the longer term to substantially reduce fraud and error in the benefits system. However, this could be seriously undermined because of the uncertainty about how DWP will administer the housing element of Universal Credit without increased risks of fraud and error.

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