Source · Select Committees · Public Accounts Committee
Recommendation 16
16
Rejected
We questioned the Department on the challenges it may face in implementing its strategy.
Conclusion
We questioned the Department on the challenges it may face in implementing its strategy. The Department told us that it will achieve the planned increase in frontline counter-fraud staff to 9,500 full-time equivalents by July 2022. It explained that its plan to review over two million Universal Credit cases will require a further 2,000 staff, which it was “building up gradually” and it expected to take until April 2024 to be fully resourced.27 We asked the Department what steps it was taking to ensure that it could recruit the staff that it needed given the current employment market. The Department recognised that “it is a tight labour market” but that it expected its jobs to be “incredibly attractive … [and] … add huge value” as well as being interesting and of benefit to society.28 We asked the Department how the Government’s planned reduction of civil service headcount by 90,000 staff would impact its strategy. It told us it could not say more until the Government had made a decision about how it will distribute the planned reductions.29
Government Response Summary
The government disagrees with the committee's recommendation and reiterates its existing plan to reduce fraud and error, focusing on frontline staff, legal powers, and public/private sector collaboration, funded by existing investments and seeking further opportunities to clamp down on fraud across government.
Government Response
Rejected
HM Government
Rejected
The government disagrees with the Committee’s recommendation. 3.2 In May 2022, the government published its plan to reduce fraud and error, focussing on three areas: • DWP frontline counter-fraud professionals and data analytics investment, • creating new legal powers to investigate and punish potential fraudsters and • bringing together the public and private sectors to keep one step ahead. 3.3 The department received £613 million investment through Spending Review 2021 and Spring Statement 2022 to prevent an estimated £2 billion being lost to fraud and error by 2024-25. Autumn Statement 2022 funded an additional £280 million to deliver £396 million Annual Managed Expenditure (AME) savings by 2024-25. This will enable reviews of Universal Credit claims and cracking down on claimants and criminals seeking to abuse the system. The OBR forecast savings of about £9 billion by 2027-28 if this increased investment continues into the next Spending Review period. 3.4 The government set out plans to legislate for additional powers when Parliamentary time allows and is expected to have additional impact on the OBR forecast. 3.5 The department is seeking opportunities to clamp down on fraud across government. HM Revenue and Customs (HMRC) have shared information with the department about the Self-Employed Income Support Scheme, and together will continue to explore ways to tackle fraud across government. 3.6 The department’s ARA will update on progress, new opportunities, and if need be, any contingency action being taken. Therefore, the department does not feel it is necessary or productive to set out detailed contingency plans for various scenarios at this point, which could distract from focusing on the delivery of its existing plan.