Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
We have previously found that the Department lacks the ability to demonstrate that its counter-fraud...
Recommendation
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. As part of our inquiry into the Department’s 2019–20 Accounts, we recommended that the Department needed to be able to monitor and report on the impact and cost effectiveness of each of its fraud and error initiatives, and in particular the impact of its investment in new technology.36 When we examined the Department’s 2020–21 Accounts, we concluded that while the Department claimed it was making savings across the benefit system, it was unable to explain how these would reduce the amount of fraud and error in its expenditure. We recommended that it work with the NAO to develop a framework, by the time of its 2021–22 Annual Report and Accounts, that allowed a consistent basis for reporting how much money has been lost or saved for the taxpayer as a result of action to prevent fraud and error.37 In its response to our report, the Department agreed with our recommendation and claimed it was already developing an internal measurement and reporting capability to provide estimates of the amount saved for the taxpayer from fraud and error activities.38
Government Response Summary
The government published an estimate of £2 billion in savings from counter fraud efforts in the 2021-22 ARA and is committed to working with the NAO to ensure agreement on the framework for the 2022-23 ARA.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: 2022-23 Annual Report and Accounts 4.2 The department published an estimate for the first time in the 2021-22 Annual Report and Accounts (ARA) demonstrating savings of £2 billion achieved in 2021-22 through the department’s counter fraud function. The methodology that was developed to produce this estimate was the culmination of a substantial amount of work, including receiving assurance 19 from the Government Internal Audit Agency, and working with internal stakeholders, to improve the governance around the estimate and critically assess the methodology. 4.3 The department shared the methodology as part of the ARA and acknowledges that the NAO has yet to endorse this framework but is committed to working together ahead of the 2022-23 ARA to ensure this agreement is in place.