DWP annual report and accounts 2024 to 2025 · first published 9 July 2025
This is the Department for Work and Pensions' (DWP) official annual report and accounts for the financial year 1 April 2024 to 31 March 2025. It covers DWP's spending (£287.9bn in welfare, £9.9bn in departmental running costs), performance against its five goals, and strategic priorities going forward. It is not a procurement policy note and sets no new rules directly on suppliers. However, it signals clearly where DWP is investing, what services it is expanding, and what capabilities it needs — all of which translate into near-term and future contract opportunities. Key signals for SMEs include: the new Jobs and Careers Service (reforming Jobcentre Plus), expansion of Sector-based Work Academy Programmes (SWAPs) to 100,000 starts in 2025–26, a big AI and digital transformation push, and a new Functional Assessment Service contract already in place. The document covers central government (DWP and its ten arm's-length bodies) only.
WHO THIS APPLIES TO
THE ENKII VIEW
For SMEs, the most actionable signal is DWP's explicit commitment to expand SWAPs to 100,000 starts in 2025–26, including new hospitality SWAPs across 26 areas — this is a direct pipeline for training and employment-support providers. The AI and digital transformation agenda (80% of services now cloud-hosted, generative AI already in use, legacy system remediation underway) creates openings for tech SMEs with cloud, AI, or cyber credentials. The £347m efficiency target already exceeded signals DWP will continue to push suppliers for cost and productivity gains, so SMEs bidding any DWP work should build demonstrable efficiency and digital capability into their proposals.
1. Research the SWAP expansion tender pipeline immediately — DWP has committed to 100,000 SWAP starts in 2025–26, including 26 new hospitality SWAP areas. Contact your local DWP/Jobcentre Plus district to express interest or find frameworks via Find a Tender Service (FTS).
SMEs providing employment, training or skills services — The document confirms: 'the government announced a further expansion of the scheme to 100,000 customers in 2025 to 2026' including new hospitality SWAPs across 26 areas — this is a named, funded, near-term contract opportunity.
2. Engage with your regional Get Britain Working Trailblazer — 17 are underway or imminent. These are co-design opportunities where local organisations can shape (and potentially deliver) integrated work, health and skills models before they become formal procurements.
SMEs in employment support, health, or community services — The document states 'Seventeen Trailblazers are now underway or imminent, developing new models to identify customers' needs up front' — early engagement typically improves bid success rates when formal contracts follow.
3. Position your capabilities against DWP's stated digital priorities: cloud migration (80% complete, legacy remediation ongoing), generative AI deployment, and cyber resilience (GovAssure framework). Ensure your G-Cloud or other framework listings are current and highlight these specific credentials.
SMEs in digital, cloud, AI, or cyber security — The document flags cyber and legacy systems as a persistent Red risk, and confirms active adoption of cloud and generative AI — signalling ongoing procurement demand in these areas.
4. Build a pipeline case around the Keep Britain Working Review (concluding autumn 2025) and the Pathways to Work Green Paper — both are likely to generate new employer-facing contracts. Monitor DWP and Jobcentre Plus procurement notices from late 2025 onwards.
SMEs providing disability employment, workplace inclusion, or HR consultancy services — The document confirms 'The findings of the review's discovery phase were published in March 2025. The review will conclude in autumn 2025' — post-review implementation contracts typically follow within 6–18 months.
5. Monitor the Access to Work scheme closely — spend rose to £306m in 2024–25 with backlogs growing. DWP is likely to seek additional capacity. Register on relevant frameworks and ensure your services are mapped to DWP's Access to Work eligible support categories.
SMEs in support worker, travel-to-work, or assistive technology sectors — The document states Access to Work spend 'increased by a further £57 million to £306 million and backlogs of claims also rose' due to more users and higher average costs — unmet demand signals procurement activity ahead.
6. Demonstrate efficiency and value-for-money credentials explicitly in bids — DWP exceeded its £270m efficiency target by delivering £347m in savings and will continue to face efficiency pressure. Show how your solution reduces cost, increases throughput, or enables self-service.
All SMEs bidding for DWP contracts — The document confirms DWP 'delivered £347 million in efficiencies in 2024 to 2025 against our Spending Review baseline, exceeding our target of £270 million' — buyers under this pressure reward suppliers who help them hit similar targets.
Every rule below quotes the official document verbatim.
DWP spent £287.9bn in Annually Managed Expenditure (welfare benefits) and £9.9bn in departmental expenditure in 2024–25. (DWP central department and ten public bodies, financial year 2024–25)
“In 2024 to 2025 we spent £287.9 billion in Annually Managed Expenditure which provided financial support to approximately 23 million people across Great Britain. We also spent £9.9 billion in departmental expenditure.”
DWP delivered £347m in efficiencies in 2024–25, exceeding its Spending Review target of £270m. (DWP departmental operations, 2024–25)
“we delivered £347 million in efficiencies in 2024 to 2025 against our Spending Review baseline, exceeding our target of £270 million.”
DWP's total departmental Resource DEL budget for 2024–25 was agreed at £9.6bn (including depreciation) at Supplementary Estimate, up from £8.5bn at Main Estimate. (DWP central department, 2024–25)
“we agreed a Resource DEL budget of £9.6 billion (including depreciation) for 2024 to 2025 at Supplementary Estimate.”
DWP's Capital DEL budget for 2024–25 was agreed at £625m at Supplementary Estimate, up from £579m at Main Estimate. (DWP central department, 2024–25)
“we agreed a Capital DEL budget of £625 million for 2024 to 2025 at Supplementary Estimate.”
Sector-based Work Academy Programmes (SWAPs) delivered 86,640 starts in 2024–25, exceeding the 80,000 ambition, and are being expanded to 100,000 starts in 2025–26. (England (with consequential funding to Scotland and Northern Ireland), 2024–25 and 2025–26)
“We delivered 86,640 SWAPs starts in 2024 to 2025, exceeding the ambition of 80,000 starts... In February 2025 the government announced a further expansion of the scheme to 100,000 customers in 2025 to 2026.”
New hospitality SWAPs will be delivered across 26 new areas including 13 coastal towns such as Scarborough and Blackpool in 2025–26. (England, 2025–26)
“we will deliver hospitality SWAPs working with UK Hospitality across 26 new areas, including 13 coastal towns such as Scarborough and Blackpool.”
A new single Functional Assessment Service (FAS) contract replaced a multi-provider model for all health and disability benefit assessments across four geographic areas from September 2024. (DWP health and disability assessments, from September 2024)
“In September 2024 we made the process of determining benefit entitlement simpler for customers. The new Functional Assessment Service has replaced a multi-provider model with a single provider for all assessments in each of our 4 geographic areas.”
Access to Work spend rose by a further £57m to £306m in 2024–25, driven by increased users and higher average claim costs. (DWP Access to Work scheme, 2024–25)
“Access to Work, where spend increased by a further £57 million to £306 million and backlogs of claims also rose. This is due to an increase in the number of people accessing the scheme and a rise in the average cost of claims for example, on support worker rates and travel to work.”
80% of DWP services are now hosted in the cloud, and AI tools identified over 16,000 documents showing potentially at-risk customers in 2024–25. (DWP digital and technology operations, 2024–25)
“80% of services now hosted in the cloud... AI tools identified over 16,000 documents showing potentially at-risk customers.”
DWP's new Jobs and Careers Service will be piloted via an initial pathfinder in Wakefield from April 2025, merging Jobcentre Plus and the National Careers Service in England. (England, from April 2025)
“The initial Jobs and Careers Service pathfinder, in Wakefield, will begin in April 2025.”
The Restart Scheme was extended to June 2026 and eligibility expanded from 9 months to 6 months unemployed from July 2024; 840,000 people have started since July 2021 with 320,000 moving into work. (England and Wales (Scotland and Northern Ireland receive consequential funding), from July 2024)
“From July 2024 Restart was extended until June 2026, with eligibility expanded to include unemployed people who have been on Universal Credit for 6 months or more.”
Get Britain Working Trailblazers — 17 now underway or imminent — are developing new local models of integrated work, health and skills support. (DWP and local partners, 2024–25 onwards)
“Seventeen Trailblazers are now underway or imminent, developing new models to identify customers' needs up front so we can effectively tailor support to different customer groups.”
DWP allocated £842m to local authorities in England and Wales for the Household Support Fund in 2024–25. (Local authorities in England and Wales, 2024–25)
“we allocated £842 million to deliver the Household Support Fund across England, to help those in need locally with the cost of essentials. The devolved governments received consequential funding.”
DWP's fraud and error overpayment rate fell from 3.6% in 2023–24 to 3.3% in 2024–25; Universal Credit overpayment rate reduced by over a fifth year-on-year. (DWP benefit expenditure, 2024–25)
“the overpayment rate for fraud and error change from 3.6% in 2023 to 2024 to 3.3% in 2024 to 2025... In Universal Credit I am pleased to report that the overpayment rate has reduced by over a fifth compared to last year.”
The Public Authorities (Fraud, Error and Recovery) Bill has been introduced to Parliament to modernise DWP's legislative framework for identifying, preventing, and recovering fraud and debt. (DWP and wider public authorities, legislative process ongoing as at March 2025)
“Introduction of the Public Authorities (Fraud, Error and Recovery) Bill which makes provisions to identify, prevent and deter fraud and error in the benefits system.”
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