Spending watchdogs have expressed concerns over the Department for Work and Pensions' (DWP) ability to achieve £20bn cost savings over four years while implementing huge changes to the welfare system.

In the first of a series of reports examining how government departments are implementing spending review (SR) cuts, the National Audit Office found the department must swiftly demonstrate it can strategically manage major cost reductions. Although the department met its target to slash operational costs by £535m last year, this was achieved by budget restrictions rather than fundamental reform, it noted.