Recommendation 4

The Department has not set out in sufficient detail how it will assess whether it is achieving what it wants from its investment in fraud prevention measures. We have previously found that the Department lacks the ability to demonstrate that its counter-fraud activities are having the intended impact and are cost-effective, and recommended that it work with the NAO to develop a consistent framework for reporting savings it generates for the taxpayer. The Department expects its £613 million investment in counter-fraud measures to generate £4 billion of savings over five years, but it has not set out in detail how the specific activities funded will produce this impact. In its 2021–22 Annual Report the Department reported a newly developed estimate that suggests its counter-fraud activities generated £2 billion of savings for 2021–22. However, this estimate requires further development before it can provide an appropriate reporting framework. The Department has committed to developing better, stronger metrics to demonstrate the impact and cost-effectiveness of its counter-fraud measures. Recommendation: We again recommend that the Department work with the NAO to ensure that by the time of its 2022–23 Annual Report and Accounts it has in place an agreed framework to report on the impact and cost-effectiveness of its counter-fraud activities. The Department for Work and Pensions’ Accounts 2021–22 – Fraud and error in the benefits system 7