Source · Select Committees · Public Accounts Committee
Recommendation 11
11
Accepted
DBT lacks definitive figures on fraud and error split within COVID support schemes.
Conclusion
DBT does not have definitive figures on the split between fraud and error within the schemes. DBT told us the number of payments classified as fraud by local authorities were 8% of the total number of recovered payments it is aware of from local authority reporting, and 15% by number based on a separate fraud and error survey of authorities commissioned by the Department.17 Using the local authority reporting data, and excluding payments that authorities had not classified as either fraud or error, the National Audit Office calculated that 17% of payments by value were classified as fraud.18
Government Response Summary
The government has accepted the finding, outlining actions taken to improve recovery of irregular payments, such as re-contacting local authorities, streamlining processes, implementing a pilot digital tool, and fast-tracking fraud referrals. The department is also working with local authorities to quantify recoverable payments and costs.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Target implementation date: December 2023 2.2 The planned non-executive directors (NED) review reported to the Committee has now been undertaken by the Chair of Department for Business and Trade (the department’s) Audit and Risk Assurance Committee. The review was undertaken during the period June through early September 2023 with findings now presented to the Permanent Secretary. 2.3 The review identified opportunities to improve recovery of irregular payments overall, including fraud payments, and improve value for money, with the following work underway to implement recommendations: • all local authorities have been re-contacted to request engagement, increasing the volume and accelerating the flow of irregular payments cases; • recovery processes have been streamlined with appropriately deployed skills and new resource allocated; • a pilot digital tool has been introduced to help assess viability of recovery from grant recipient businesses, ensuring recovery effort is focused on recoverable debt; and • fast-tracking referrals of actual and suspected fraud payments for litigation is ongoing. 2.4 The department is also working with local authorities to quantify the value of irregular payments that might reasonably be expected to be recovered and the associated cost of recovery.