The UK government has confirmed a structural change within HM Revenue and Customs (HMRC), bringing the Valuation Office Agency (VOA) into the department as part of a wider effort to improve efficiency and oversight. The move comes amid growing concern over the rising cost of welfare and a renewed focus on recovering overpaid benefits.
The integration, which took effect in April, is being presented by officials as a step towards greater transparency in how property valuations underpin both taxation and benefit calculations. It also sits within a broader strategy to reduce administrative duplication and strengthen enforcement capabilities across departments.
Integration of Valuation Functions to Streamline Oversight
The VOA, which provides property valuations used to calculate council tax, business rates, and housing-related benefits, now operates directly within HMRC. According to the Treasury, this change is intended to “reduce the duplication of work, improve efficiency, reduce unnecessary costs, and improve transparency.”
These valuations play a central role in determining payments such as local housing allowance, which influences housing benefit and universal credit for private tenants. By consolidating these functions, the government aims to align property data more closely with tax administration systems.
Officials have stated that the integration is expected to deliver savings of between 5% and 10% in VOA administrative costs by the 2028–2029 tax year. According to government statements, the reform is also designed to improve the experience of taxpayers and businesses while supporting ongoing efforts to modernise the tax system.
Dan Tomlinson, Exchequer Secretary to the Treasury, described the move as part of a broader transformation programme, stating that it would bring property valuations into HMRC’s “ambitious programme of modernisation and reform.” The change also reflects commitments outlined in HMRC’s Transformation Roadmap, which emphasises digitalisation, data integration, and system-wide efficiency improvements.
The roadmap itself highlights a long-term shift towards a more automated and data-driven tax system, where departments share information more effectively to reduce errors and improve compliance. According to HMRC, integrating the VOA is one element of this wider restructuring.
Wider Crackdown on Overpayments and Fraud
The reorganisation coincides with increased efforts by the government to recover money lost through benefit overpayments and fraud. According to Department for Work and Pensions (DWP) figures, the government aims to save £14.6 billion by 2030–31 through a combination of enforcement, improved data use, and expanded investigative capacity.
This includes plans to deploy up to 3,000 additional staff and invest in analytics tools designed to identify discrepancies in claims. According to official statements, these measures are intended to strengthen the government’s ability to detect and address fraud and error across the welfare system.
Separately, the DWP has been given expanded powers and access to new data sources to support investigations. According to earlier announcements, these changes are expected to save £1.5 billion by the end of the decade, with a specific focus on recovering overpayments in universal credit.
The Treasury has also indicated that reclaiming incorrectly paid benefits is a key priority, particularly as overall welfare spending continues to rise. While the VOA integration is primarily administrative, it forms part of a broader approach that links tax, property data, and benefit assessments more closely.
Angela MacDonald, HMRC’s Second Permanent Secretary, noted that property valuations supported the collection of more than £62 billion in council tax and business rates during 2025–26. According to HMRC, bringing this work in-house is intended to provide “greater flexibility” and support the development of a more integrated tax and customs system.
