Delays in processing claims under the new Personal Independence Payment have reduced the amount the Government expected to save by £140 million, the National Audit Office said.
The backlog in cases have cut expected savings over the course of this Parliament, with the DWP now forecast to save £640 million a year by 2015, rather than its orginial prediction of £780 million.
Each new PIP claim - worth between £21 and £134 a week to disabled claimants - costs an average £182 to administer, compared to £49 under DLA, the report said.
However, the DWP said it still expects to achieve annual savings of £3 billion by 2018/19, with 3.6 million claims assessed by 2018.
More top news
A man has been rescued by firefighters - after getting his head stuck inside a washing machine.
Late-running passengers who attempt to pass through security with less than 30 minutes before their flight departs will now be stopped.
A Ukrainian pilot who spent two years in prison in Russia has been sworn into national parliament after being released last week.