Source · Select Committees · Public Accounts Committee
Recommendation 17
17
Rejected
We have previously recommended that the Department should communicate to Parliament what additional powers or...
Conclusion
We have previously recommended that the Department should communicate to Parliament what additional powers or changes to legislation it needed to improve controls on specific fraud and error risks.30 The Department set out the new powers it believes it requires in Fighting Fraud in the Welfare System, which includes greater access to third- party banking data which would enable it to crack down on fraud caused by claimants misreporting the value of their savings and capital.31 We noted that this legislation was not reflected in the most recent Queen’s speech and asked what impact this would have on the Department’s plan for reducing fraud and error. The Department told us that the legislation strand of its strategy was a longer-term goal that would take time to bring into 26 DWP ARA 2021–22, page 232 27 Qq 56, 59 28 Qq 57–59 29 Qq 7–8 30 Committee of Public Accounts, Department for Work and Pensions Accounts 2019–20, Twenty-Sixth Report of Session 2019–21, HC 681, 18 November 2020 31 Department for Work & Pensions, Fighting Fraud in the Welfare System, CP 679, May 2022 The Department for Work and Pensions’ Accounts 2021–22 – Fraud and error in the benefits system 15 effect, even if the legislation were passed immediately. It added that it definitely needed the expanded powers in the longer-term to enable it to prevent fraud relating to the value of claimant savings and capital, but that its plan for this Spending Review period was focused on detection and removal of fraud and error already in the welfare system through its £613 million investment.32
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.