There are many stories around today concerning the National Audit Office report on the accounts of various government departments including the Department for Work and Pensions.

The Financial Times has coverage as does the Press Association.

"'Fraud and error' loses £2.7bn

(UKPA) – 17 hours ago

Some £2.7 billion of public money was lost to fraud and error in the benefits system last year, the National Audit Office said.

The Department for Work and Pensions (DWP) had its annual accounts qualified by the public spending watchdog for the 20th consecutive year as a result.

The NAO estimated £900 million had been lost to fraud, £900 million to "customer" error and £900 million to mistakes by officials.

The total cost represented 2% of the £135.9 billion benefits bill that the DWP oversaw in 2008/9.

That was down slightly from 2.1% in 2007/8, although the actual cost to the taxpayer has remained the same for the past four years.

The NAO also estimated underpayments last year of £1.2 billion.

Amyas Morse, the auditor general and head of the NAO, said: "I have had to qualify my opinion on the Department for Work and Pensions accounts because of the levels of fraud and error: an estimated £2.7 billion of overpayments and £1.2 billion of underpayments.

"While it is promising that the total proportion of fraud and error continues to fall and the Department has put in place measures to try to reduce this still further, the Department should be aware of the risks of further fraud and error due to the pressure on the benefits system because of the current economic downturn."

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