Government use of data analytics on error and fraud

Government lost between £55bn-£81bn to fraud and error in 2023-24. There are central platforms for public bodies to use to detect error and fraud, and in the same year these generated around £400m of savings. Some have used data analytics to detect and prevent fraud and error for many years, and a few are now … Show more

Government lost between £55bn-£81bn to fraud and error in 2023-24. There are central platforms for public bodies to use to detect error and fraud, and in the same year these generated around £400m of savings. Some have used data analytics to detect and prevent fraud and error for many years, and a few are now trialling new technologies including artificial intelligence. The National Audit Office (NAO) found in July that the use of data analytics to tackle this issue have produced only modest savings compared to the amount which they could potentially achieve. It also found that the £6bn/yr which the Government Digital Service believes government could save in this way should be read with caution, due to the fact it does not account for the costs or effort needed to achieve it. The PAC found in 2023 that large gaps remained in government’s understanding of its exposure to the risks of fraud and corruption against government, while its 2021 report on fraud and error warned that government significantly increased taxpayer exposure to fraud and error by its twin decisions to drop basic fraud and error checks in paying out Covid-19 loans, and to support people and businesses that it had no prior relationship with. Proceeding from the NAO’s July report, the PAC will hear from senior government officials as it scrutinises how government can overcome barriers to using data analytics to save more of the taxpayer’s money. If you have evidence on these issues, please submit here by 23:59 on Thursday 18 December 2025. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. The Committee decides what information to publish and how. You can request anonymity or confidentiality when you send evidence, but it is for the Committee to say whether it will agree. It may treat submissions confidentially, even where you have not requested this. Please note that the Committee’s inquiry cannot assist with individual cases. If you need help with an individual problem you are having, you may wish to read the information on Parliament’s website about who you can contact with different issues. Show less