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Defence · Scrutiny & accountability · 21 October 2026

National Audit Office urges DWP to clarify innovation guidance

The National Audit Office has published a report recommending the Department for Work and Pensions strengthen its approach to innovation. The review advises the department to provide clearer staff guidance on risk and share lessons more consistently, including from failed projects.

The National Audit Office published a report on Wednesday 21 October reviewing the Department for Work and Pensions' innovation practices. The review recommends that the department provide clearer guidance to staff regarding risk appetite and the boundaries for innovation. It also advises sharing lessons from innovation activity more consistently, including those from failed innovations.

Figures published with the announcement show the department is using a machine-learning model to identify at-risk child maintenance payments. Under the project, 715 cases a month are estimated to be prevented from moving into arrears. The initiative is also credited with saving staff time equivalent to 49 full-time employees.

The department is currently trialling the assignment of work coaches to specific economic sectors to provide tailored support. The review notes that these are small-scale innovations. It highlights that the department cannot compromise on paying benefits on time and must protect large volumes of sensitive personal data.

The report does not state when the department will implement the recommended changes to its guidance or how it will address the specific lessons learned from failed innovations.

The original: DWP is innovating to improve services for customers and value for taxpayers, say NAO (National Audit Office, 20 October 2026)

Written by StreetOwl from National Audit Office’s own announcement. It was drafted by StreetOwl’s own model, every figure and quotation was checked by code against the announcement, and it was read and approved by Michael Rossi before it went up. It says what was announced, not what anyone should do about it.

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