DWP Insources 2,700 Workers to Tackle Benefit Fraud

The Department for Work and Pensions is insourcing 2,700 workers previously employed by business services firm Teleperformance to conduct Universal Credit checks. This transition follows the termination of a £368 million contract that tasked the firm with stopping over £6 billion in incorrect payments by 2027-28.

The government is moving these reviews to an internal service to target £17.3 billion in savings by March 2031. This expanded project will now include checks for Pension Credit claims in addition to Universal Credit. Both the department and Teleperformance stated the contract termination was not due to supplier performance or breaches of contract.

The Public and Commercial Services Union described the move as a victory. Union leadership argued that benefit reviews are core civil service functions that should not be outsourced for private profit, claiming the previous arrangement caused frustration and poor case handovers.