Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
Government lacks evidence on optimal prosecution levels needed for fraud deterrence.
Conclusion
On the deterrence effect of convictions and whether there is a sufficient level of convictions to create a suitable deterrent, the PSFA told us that it was not aware of any evidence to indicate what the right level of prosecutions would be to create a deterrent.56 After our evidence session, the Cabinet Office wrote to us providing us with statistics for the main areas of government’s prosecution activity, including HM Revenue & Customs (HMRC) and Department for Work & Pensions (DWP). Between 2019–20 and 2021–22, HMRC’s criminal investigations had led to the prosecution of 1,090 and the conviction of 983 individuals. Between 2020–21 and 2022–23, DWP referred 1,213 cases to the Crown Prosecution Service or Procurator Fiscal for prosecution, and secured 1,154 convictions.57 While it acknowledged the importance of prosecutions and convictions, the PSFA said it was important to make use of the full suite of interventions available to government in tackling fraud and corruption, for example, better controls, better prevention and better use of data analytics. Cabinet Office told us about the importance of getting the balance between civil and criminal sanctions right. While successful criminal sanctions can create a very strong deterrent effect, they can also be expensive and time-consuming.58 Civil sanctions on the other hand can be discharged more quickly and with a lower burden of proof but may not offer the same deterrent effect.59
Government Response Summary
The government agrees that transparency and clear communications are a priority, committing to establish a Cross Government Counter Fraud Communications Working Group to develop a plan, amplify successes, and promote the deterrence effect by June 2024.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: June 2024 Transparency and clear communications, highlighting the effectiveness of counter fraud measures and the government’s efforts in doing so, is a priority for the PSFA. The PSFA works closely with the Cabinet Office Communications teams to identify, generate, and share positive and deterrence-based news stories highlighting the impact of its work. It will also continue to hold itself accountable via public publications of its strategic plans and report on progress made to tackle fraud and corruption through its imminent Annual Report. A Cross Government Counter Fraud Communications Working Group has been established to enhance the coordination, collaboration, and consistency of communications regarding public sector counter fraud activities. It is led by the PSFA and includes key government departments and agencies with membership expertise in countering fraud, behavioural insights and communications. The Cross Government Counter Fraud Communications Working Group will develop and maintain a cross-government communications plan, that will provide a common narrative for the government's efforts in preventing and pursuing fraudsters. It will also amplify individual public body communications to further promote the success and impact of counter fraud activities and to create a deterrence effect.