Benefits And Health

Monday, July 22, 2019

HMRC misses fraud & error targets

HMRC missed its target for reducing fraud and error in personal tax credit overpayments last year, the public spending watchdog has said.

Erroneous and fraudulent overpayments increased to 5.7% of tax credits spending (£1.46bn) which exceeded the department’s target of 5% in 2017-18, according to a report by the National Audit Office.

The most recent estimates of fraud and error apply to 2017-18 but HMRC also expects to see higher levels of fraud and error in 2018-19, according to the NAO.

This because 270 full-time equivalent staff were moved from fraud and error workstreams onto EU exit ones, reducing its capacity.

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