Recommendation 9

We asked the Department when it expected to be able to set a target for reducing fraud and error. It referred to its letter to the Committee of May 2022 and reiterated it still did not believe that it was able to set a target because of the uncertainty in baseline levels of fraud and error in post-COVID.15 It added that it did not yet know when there would be sufficient clarity around the baseline to set a target. It further explained that while it agreed it needed to set a target, in the meantime it could work with the NAO on developing a reporting mechanism to demonstrate the effectiveness of its counter-fraud activities based on expected savings.16 The C&AG observed that there will always be a changing context around baseline levels of fraud and error, and that the Department should work on producing an agreed basis for reporting with commentary alongside to explain the context, rather than saying the context prevents it from reporting. The Department and this Committee agreed that this would be a positive step forward.17