Select committee: Public Accounts Committee
Conclusion 19
Sixty-Ninth Report - Tackling fraud and corruption against government
Published 8 Sep 2023
Addressed to HM Treasury
Public Accounts Committee Tackling fraud and corruption against government All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
DWP and HMRC are the two departments at the front line of the battle against fraud. These departments have their own fraud investigation and enforcement legal powers.60 Cabinet Office told us that the PSFA will itself be setting up an enforcement unit to meet the demand across government for effective civil and criminal enforcement actions.61 Government has neither the ability or capability to detect, investigate and gather sufficient evidence to support a prosecution for all fraud and corruption.62 We asked how government planned to use transparency to make the most of its investigative capabilities. Cabinet Office told us about the importance of annual reporting on fraud, where it occurs, the actions taken in response to it and the outcomes achieved. It is also of vital importance to provide transparency to public on the consequences of fraudsters’ actions, and for organisations to expose themselves to internal and external scrutiny of their counter-fraud and corruption efforts.63 HM Treasury also acknowledged the importance of transparency and celebrating tackling fraud and corruption to deter others.64 55 Qq 5, 93 56 Q 11 57 Letter to the Chair of the Public Accounts Committee from Alex Chisholm, Cabinet Office Permanent Secretary, 25 May 2023 58 Qq 10–11 59 Q 11, C&AG’s Report, para 3.11 60 Q 25; C&AG‘s Report, para 22 61 Qq 25, 55 62 C&AG‘s Report, para 3.11 63 Q 88 64 Q 28 16 Tackling fraud and corruption against government Recovery of losses
From: Public Accounts Committee, Sixty-Ninth Report - Tackling fraud and corruption against government (HC 1230), 8 September 2023
Government response
The government responded to the whole report on 18 November 2023 (deadline 8 November 2023).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government agrees with most of the Committee's recommendations on tackling fraud and corruption against government, but disagrees with the recommendation for a separate annual strategic intelligence report.
- On a strategic intelligence report, the government disagrees. The PSFA "will not publish a separate strategic intelligence report", and says it will not publish information that could increase the fraud threat by showing how attacks could be executed.
- It will continue to publish annual Fraud Landscape Reports and bulletins. It says separating fraud from error requires determining intent, which is "cost intensive", so this is left to the discretion of individual departments.
- The government agrees the PSFA should update the Committee in 12 months on the outcome of the next Workforce and Performance Review, with a target implementation date of September 2024.
- On a cross-government communications strategy, the government agrees, with a target implementation date of June 2024. A working group "will develop and maintain a cross-government communications plan".