The Department for Work and Pensions is bringing a major Universal Credit review operation back inside government, with around 2,700 staff set to support checks aimed at reducing fraud and payment errors.
DWP Ends Outsourced Universal Credit Review Contract
The change affects the department’s Targeted Case Review program, which examines Universal Credit claims for signs of incorrect payments, fraud or other errors.
According to Birmingham Live, the DWP had previously awarded outsourcing company Teleperformance, now known as TP, a contract worth about £368 million in 2024 to support the review program.
The department had built a wider operation involving thousands of staff as part of an effort to reduce losses linked to fraud and error. Universal Credit has been identified by the government as a major source of incorrect benefit spending, making claim reviews a central part of the DWP’s enforcement strategy.
A DWP spokesperson said: “We thank TP for their support in helping us to ramp up our targeted case reviews, return money back to the taxpayer and their collaborative approach as a strategic supplier,”
The department said the move should not be interpreted as a judgment on the contractor’s performance.
“The decision was taken to deliver targeted case reviews internally for the next phase, as we work to deliver £17.3bn of savings by March 2031, and was not due to supplier performance. Both parties continue to work closely during this phase of transition from supplier to DWP.
“This is part of wider plans targeting billions of pounds more in savings in the coming years by tackling fraud and error in the welfare system.”
Credit: Shutterstock
Thousands of Staff Form Part of Wider Fraud and Error Drive
The Targeted Case Review program forms part of a broader DWP effort to examine Universal Credit claims and identify cases where claimants may have received the wrong amount.
The department previously created a team of about 6,000 staff with the aim of preventing more than £6 billion in fraud and error by 2027-28, according to the supplied report.
The addition or transfer of around 2,700 staff into the internal operation marks a significant change in how that work will be organized.
Claim reviews can involve checking whether information held by the DWP remains accurate, including details that may affect a person’s entitlement or the amount they receive. The government’s stated objective is to recover or prevent incorrect payments while protecting public funds.
The DWP has now set a broader target of delivering £17.3 billion in savings by March 2031 through measures designed to tackle fraud and error across the welfare system.
PCS Welcomes Decision to Bring Work Back Into the Civil Service
The Public and Commercial Services Union, which represents many civil servants, has supported the decision to move the review work back into the DWP.
PCS general secretary Fran Heathcote said the union had opposed outsourcing the work from the beginning.
“We have consistently argued that Universal Credit review work is core civil service work and should never have been outsourced for private profit.
“Our members have seen first-hand the problems this contract has created, from poor handovers to additional pressure on DWP staff.
“Bringing this work back into the public service is the right decision for workers, taxpayers and the delivery of these vital services.
“Labour pledged to deliver the greatest wave of insourcing for a generation, and this decision shows what can be achieved when government listens to workers and trade unions.”
The union’s comments present a different emphasis from the DWP’s explanation. While PCS pointed to operational problems associated with the contract, the department explicitly said its decision to bring the service in-house was not due to supplier performance.
What the Change Means for Universal Credit Reviews
The shift does not signal an end to Universal Credit checks. Instead, it changes who will carry out more of them.
The DWP intends to continue targeted reviews as part of its wider effort to reduce incorrect benefit payments. That means Universal Credit claimants may continue to be contacted where the department decides a claim requires additional scrutiny or updated information.
The move also places greater responsibility for the review process directly inside the civil service. TP and the DWP are continuing to work together during the transition, according to the department.
The government says the internal model will support the next phase of its fraud-and-error program as it pursues its stated £17.3 billion savings target by March 2031.
