State pension recipients and claimants of benefits, such as Universal Credit and Personal Independence Payment (PIP), are at risk of “serious harm” due to the rollout of artificial intelligence (AI) across Department for Work and Pensions (DWP) services, charities are warning.

Prime Minister Keir Starmer has pledged to “transform public services” through the emerging technology but stakeholders are concerned the “forced implementation” could damage the social security system.


Under the Labour Government’s recently unveiled 50-point proposal, Starmer aims to “mainstream AI into the veins” of the UK’s tax-funded institutions in a bid to boost growth and improve service delivery.

While the DWP is not explicitly mentioned, Labour has already announced its intentions to use AI technology in reforming Jobcentres. Under the DWP’s planned reforms, AI will be used to provide information on jobs and skills in an effort to reduce the workload for job coaches.

The Government department is already employing AI and machine learning technology to identify vulnerable individuals who need support more quickly than other claimants.

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Labour is rolling out AI across DWP services but what does this mean for pensioners and benefit claimants?

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The DWP also uses automated systems to detect fraud and error within the welfare system. According to research by the Tony Blair Institute, implementing AI tools could free up 40 per cent of the DWP’s time. This efficiency gain could potentially translate to nearly £1billion in annual productivity savings.

However, Shelley Hopkinson, head of policy and influencing at Turn2us, cautioned that while AI could improve speed and consistency in social security, hasty implementation poses risks.

“We are concerned that the historical data used to train AI may perpetuate bias and discrimination against marginalised groups,” she said in an interview with The Big Issue.

These concerns do not appear to be unfounded, as a Guardian investigation revealed bias in the DWP’s machine-learning programme for detecting Universal Credit fraud.

Pensioner worry and DWP sign

Analysts are concerned what the tech rollout means for benefit claimants

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This investigation found that certain groups were disproportionately targeted based on age, disability, marital status and nationality. Further evidence of algorithmic errors emerged when research showed 200,000 people were wrongly investigated for housing benefit fraud due to flawed automated decisions.

The real-world impact of these errors has been significant. One single mother was mistakenly accused of owing £12,000 to the DWP. She described being left “devastated” and “fearful of ever claiming again”.

Hopkinson emphasised that “AI integration should be guided by consultation and transparency so that the system meets the needs of everyone and builds trust that decisions are fair and accurate”.

“This must come with clear accountability and safeguards to allow for challenge. AI must work for people, not against them, prioritising people’s lives and wellbeing in decision-making,” she added.

Technology Secretary Peter Kyle claimed that AI is “no longer the stuff of sci-fi movies and Doctor Who” while confirming the Government’s plans to expand its use earlier this week. He cited it was already being used in the NHS, in schools and in business.

He said: “A reforming Labour Government is called on to harness the white heat of scientific revolution in the interests of working people. From ending hospital backlogs to securing homegrown energy and giving children the best start in life, AI is essential to our programme of change.”

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Waspi women

Waspi women seek compensation from the Labour government due to DWP “maladministration”

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Outside of AI implementation, the DWP has recently faced criticism from the Parliament Health Service and Ombudsman (PHSO) for errors that have impacted state pensioners and benefit claimants.

Earlier today, the ombudsman shared that an 82-year-old British pensioner living in France lost £3,000 a year from his pension after the department failed to inform him about crucial changes to his Adult Dependency Increase (ADI) payments for eight years.

Notably, the DWP came under fire for its lack of adequate communication of state pension age changes to women born in the 1950s. This “maladministration” led to protests from the Women Against State Pension Inequality (Waspi) campaign with calls for a compensation package.

GB News has contacted the DWP for comment.