Source · Select Committees · Public Accounts Committee
Recommendation 18
18
HM Treasury’s guide to Managing Public Money states that that every department should measure and...
Conclusion
HM Treasury’s guide to Managing Public Money states that that every department should measure and estimate the scale of fraud and error and disclose this in its Annual Report were material.45 The NAO identified the proper measurement of fraud and error as a crucial because it shows departments where controls need to be improved and counter fraud efforts directed.46 We asked HMRC when it expects to have an estimate of fraud and error in the Coronavirus Job Retention Scheme. HMRC told us it does not expect to have a statistically valid estimate until December 2021 as the planned random sampling exercise “will take time to complete” though the evaluation framework for the CJRS was published in December 2020.47 HMRC clarified in a written response to us that it does not intend to measure the rate of fraud and error in the Self-Employed Income Support Scheme and Eat Out To Help Out schemes and will instead use a “blended approach” bringing in a wide range of available evidence.48
Government Response
Not Addressed
HM Government
Not Addressed
3.10 The government agrees with the Committee’s recommendation. Target implementation date: September 2021 3.11 HM Revenue and Customs (HMRC) has from the outset of the schemes actively assessed the level of error and fraud within all the COVID-19 support schemes it administers and has used these assessments as planning assumptions for its work to prevent and tackle error and fraud in the schemes. HMRC plans to publish detailed provisional assessments for each scheme in its annual report and accounts in the autumn of 2021 and has already given its planning assumptions to Parliament. 3.12 Assessing error and fraud levels in HMRC’s COVID-19 support schemes is a major programme for HMRC’s analysts, and the estimates inevitably have to be built up over time as more data about the accuracy of claims become available from HMRC enquiries and other sources. HMRC has taken exceptional action to assess and report error and fraud early for all COVID support schemes, using best available evidence. Traditionally, such analysis is done when full outturn data are available, at least twelve months following the liability period; for example, HMRC produces our estimates of the overall Tax Gap when full outturn data are available. 3.13 In the meantime, HMRC has put its preliminary COVID support scheme error and fraud assessments into the public domain. HMRC plans to publish a technical note setting out the methodology behind the assessments and methods, which is currently subject to NAO audit. 3.14 As policy evolved and compliance work began, HMRC used early evidence, insight and intelligence on the schemes to refine the initial error and fraud planning assumptions. These refinements have driven continuous improvements in policy and compliance work.