Universal Credit, Personal Independence Payment (PIP), Pension Credit, State Pension and Housing Benefit will all come under renewed scrutiny from the Department for Work and Pensions (DWP) during the 2026/27 financial year as part of its ongoing effort to measure fraud, claimant error and official mistakes across the benefits system.
The announcement, contained in the DWP’s latest Fraud and Error in the Benefit System report, signals another year of detailed reviews and checks on some of Britain’s most widely claimed benefits. The results of the exercise are expected to be published in May 2027.
Five Benefits Selected for 2026/27 Review
The DWP confirmed that the following benefits will be included in its fraud and error measurement programme:
| Benefit | Included in 2026/27 Review |
|---|---|
| Universal Credit | Yes |
| Personal Independence Payment (PIP) | Yes |
| Pension Credit | Yes |
| State Pension | Yes |
| Housing Benefit (Pension Age, Non Pass-Ported Cases) | Yes |
The department uses random claim reviews, administrative checks and statistical analysis to estimate how much money is being overpaid or underpaid due to fraud, claimant mistakes or official errors.
Importantly, the DWP stresses that these exercises are designed to measure overall system accuracy rather than investigate individual claimants.
Further details on benefit fraud and error statistics are available through the Government’s official publications portal at https://www.gov.uk/government/collections/fraud-and-error-in-the-benefit-system.
Universal Credit Remains the Biggest Concern
Among all benefits, Universal Credit continues to account for the largest proportion of overpayments.
According to the latest figures covering the year ending April 2026, the DWP estimated that:
| Benefit | Overpayment Rate | Estimated Value |
|---|---|---|
| Universal Credit | 10.5% | £9.5 billion |
| Pension Credit | 9.7% | £620 million |
| State Pension | 0.2% | £230 million |
The Universal Credit overpayment rate remains significantly higher than most other benefits, making it a central focus of the department’s fraud and error monitoring programme.
Officials have previously identified earnings, savings, household composition and undeclared changes in circumstances as common factors behind incorrect Universal Credit payments.
Information about Universal Credit can be found at https://www.gov.uk/universal-credit.
PIP Reviews Continue Amid Wider Welfare Debate
Personal Independence Payment (PIP) is also included in the 2026/27 review programme.
The disability benefit currently supports more than 3.9 million people across England and Wales and provides payments ranging from £121.20 to £778.40 every four weeks, depending on an individual’s award level.
While PIP remains subject to fraud and error measurement exercises, disability charities continue to emphasise that fraud within disability benefits remains relatively low compared with public perceptions.
In Scotland, many former PIP claimants have transitioned to Adult Disability Payment, administered by Social Security Scotland.
Official guidance on PIP eligibility and assessments remains available at https://www.gov.uk/pip.
State Pension Records Under Continued Examination
Although State Pension recorded the lowest overpayment rate of any major DWP benefit at just 0.2%, officials continue to examine historic underpayment issues.
The latest report highlighted ongoing work related to Home Responsibilities Protection (HRP) errors.
These errors affected some National Insurance contribution records and, according to the DWP, account for approximately six out of every ten State Pension underpayments linked to contribution records.
The Government continues to identify and correct affected cases where pensioners may have received less than their entitlement.
State Pension information is available through https://www.gov.uk/state-pension.
Pension Credit Also Under the Spotlight
Pension Credit remains another key area of focus following findings showing both overpayments and underpayments.
Latest estimates showed:
| Measure | Amount |
|---|---|
| Overpayments | £620 million |
| Overpayment Rate | 9.7% |
| Underpayments | £80 million |
| Underpayment Rate | 1.3% |
The benefit, designed to boost income for pensioners on low incomes, has been the subject of numerous awareness campaigns due to concerns that many eligible households still fail to claim it.
What the DWP Means by Fraud and Error
The department separates incorrect payments into three categories.
Fraud
Fraud occurs when:
- Benefit entitlement conditions are not met.
- The claimant could reasonably be expected to understand the effect on their entitlement.
- Payments would stop or reduce if the correct information were known.
Examples may include:
- Falsifying a medical condition to obtain benefits.
- Failing to declare employment income.
- Concealing a partner’s income.
- Misrepresenting savings or financial circumstances.
Claimant Error
Claimant error applies when incorrect information has been provided or a change in circumstances has not been reported, but there is no evidence that the claimant deliberately intended to mislead authorities.
Examples might include accidental reporting mistakes or misunderstandings of benefit rules.
Official Error
Official error occurs when an incorrect payment results from mistakes made by:
- The DWP
- HM Revenue and Customs (HMRC)
- A local authority
This can include processing delays, administrative failures or assessment mistakes where the claimant did not materially contribute to the error.
Disability Charity Calls for Protection of Benefits
Responding to the latest figures, Evan John, Policy Adviser at disability charity Sense, urged ministers not to lose sight of the importance of disability benefits.
He noted that fraud among disability benefit claimants is relatively uncommon and said the vast majority of payments are used as intended—to help disabled people meet the additional costs associated with their conditions.
John described disability benefits as a “lifeline” for many people with complex needs and called on the Government to avoid further cuts to disability support during the current Parliament.
What This Means for Claimants
For most claimants, inclusion in the fraud and error review programme does not mean they are under investigation.
The DWP selects a sample of claims for review to help estimate overall levels of fraud and error across the welfare system. These reviews are used to produce national statistics and identify trends that may require policy changes or administrative improvements.
However, claimants should continue to ensure that all information held by the DWP remains accurate and that any changes in circumstances are reported promptly.
With welfare spending remaining a major political issue, the findings from the 2026/27 review programme are likely to be closely watched by ministers, campaigners and taxpayers alike when they are published next year.
FAQs
1. Which benefits will be reviewed by the DWP in 2026/27?
Universal Credit, PIP, Pension Credit, State Pension and Housing Benefit (pension-age non pass-ported cases).
2. Does being reviewed mean a claimant is suspected of fraud?
No. The reviews are primarily used to estimate fraud and error levels across the entire benefits system.
3. What is the largest source of benefit overpayments?
Universal Credit currently records the highest estimated overpayment rate and value, at £9.5 billion.
4. What is considered claimant error?
Claimant error occurs when incorrect information is provided or changes are not reported without evidence of deliberate fraud.
5. When will the review results be published?
The DWP expects to publish the findings from the 2026/27 review programme in May 2027.
