Source · Select Committees · Public Accounts Committee

Recommendation 16

16 Accepted

Department leveraged pandemic experience and PSFA collaboration to mitigate energy scheme fraud risks.

Conclusion
The Department drew on lessons learnt from its financial support schemes during the pandemic to reduce the risk of fraud and error in the schemes.37 The Former Permanent Secretary told us that the Department’s previous experience from support schemes led to it collaborating from the outset with the Public Sector Fraud Authority (PSFA). They explained that the PSFA had supported the Department to better understand the fraud risks across the schemes. The PSFA worked with the Department’s counter fraud team, to ensure that fraud risk assessments were undertaken early and were complete. The Former 32 Q 53 33 Q 42 34 Qq 103–105 35 C&AG’s Report, paras 2.2–2.3, 2.10, 3.2, Figure 7 36 Qq 141–142 37 C&AG’s Report, para 2.9 Energy bills support 15 Permanent Secretary also told us that the lessons the Department had learnt from the pandemic allowed it to move people quickly to undertake the work needed to introduce the schemes, and that the capability and process it built up during the pandemic to stand up schemes quickly had paid off.38 The Department will also work with local authorities to address fraud and error risks for the EBSS Alternative Funding Scheme, building on expertise and structures developed through its experience through the pandemic.39
Government Response Summary
The government agrees, confirming its ongoing efforts to detect and reduce fraud. It further commits to writing to the Committee by the end of 2023 to outline how lessons learned from the energy schemes will be preserved and shared for future delivery.
Government Response Accepted
HM Government Accepted
3.1 The government agrees with the Committee’s recommendation. Target implementation date: Winter 2023-24 3.2 The department always takes the risk of fraud and error very seriously. This has been a key consideration in the development and delivery of the schemes, which was done with the support of the Public Sector Fraud Authority from the outset. The department continues proactive work to detect and reduce instances of error and fraud associated with Energy Affordability Schemes and will work with external scrutiny providers to provide the Committee with the latest estimated rates. 3.3 The government agrees with the Committee’s recommendation. Target implementation date: December 2023 3.4 The department will write to the Committee by the end of 2023 outlining how it will ensure the lessons it has learnt from the energy schemes are not lost. The teams working on the energy support schemes have for the most part transferred to the new Department for Energy Security and Net Zero, remaining together and allowing work on lessons learned and evaluation to continue uninterrupted. 3.5 Experience and lessons from undertaking similar work (delivering through the COVID-19 pandemic crisis and delivering subsequent schemes) were harnessed and used to improve delivery of energy schemes. Experience and lessons from undertaking these current schemes are being used to improve future delivery performance. 3.6 Each individual scheme is working to ensure lessons are captured and shared, in addition to a cross-cutting exercise within the department to consider wider lessons and inform future approaches to delivery, including how best to support vulnerable and hard to reach households. As part of the project closure process the department will seek independent assurance to test the robustness of plans for the preservation and sharing of lessons with future schemes.