New data has exposed a staggering £5.2bn black hole in the Universal Credit system, with almost 10% of payments being incorrectly processed last year alone. The Department for Work and Pensions (DWP) is under fire as Labour faces urgent calls to address this growing welfare crisis.
System in Disarray
The latest figures show an alarming 8.6% error rate in Universal Credit payments during 2022-23, with £5.2bn lost through a combination of fraud and official mistakes. This represents a significant increase from the previous year's £4.5bn losses.
Key Findings:
- £8.3bn total overpayments across all benefits
- £5.2bn specifically from Universal Credit
- 8.6% of UC payments contained errors
- Only £1.1bn successfully recovered
Political Fallout
Opposition parties are demanding immediate action, with Labour facing particular scrutiny as they prepare for potential government. Shadow Work and Pensions Secretary Jonathan Ashworth stated: "These figures reveal systemic failures that are costing taxpayers billions."
The DWP maintains that fraud detection systems have improved, recovering £1.1bn last year. However, critics argue more must be done to protect public funds as the cost-of-living crisis continues to bite.
