Recommendation 8

We were interested to hear about how government was demonstrating leadership at the most senior levels on tackling fraud and corruption. HM Treasury explained the steps it is taking to change and embed the counter-fraud culture across the public sector. It has asked every major department to target a return on investment of at least £3 for every £1 spent on counter-fraud.16 It has committed to an investment of £1 billion since the pandemic on tackling fraud, including £900 million on DWP, over the period 2022–23 to 2024–25, from which it expects a return of £9 billion by 2028.17 Cabinet Office brought to our attention that as part of government’s wider investment in tackling fraud and corruption, the number of people working at the PSFA has increased from 60 to 150.18 HM Treasury has also implemented Initial Fraud Impact Assessments (IFIAs) with the intention of designing out fraud at the start of initiatives.19 IFIAs are rapid assessments of potential fraud and corruption risks in policies so that appropriate controls can be designed and put in place before implementation.20 In tandem with the creation of the PSFA, HM Treasury told us that these collective changes are testament to the resolve of government to tackle fraud and corruption.21 Gaps in government’s understanding of fraud and corruption risks