Source · Select Committees · Public Accounts Committee
Recommendation 41
41
Deferred
MHCLG details improved fraud prevention and detection measures for building safety schemes.
Recommendation
MHCLG told us how the design of Homes England’s Cladding Safety Scheme would help reduce fraud in future. It explained that the new scheme captures information centrally, rather than relying on one team to pull together more disparate sources of intelligence. The Cladding Safety Scheme has also restored the practice of payment in arrears. MHCLG wrote to us after the hearing and provided further information on ways in which it is improving fraud prevention and detection on the Building Safety Fund, including increased counter fraud training and stronger fraud referral and investigation processes. MHCLG also told us it was working with the Public Sector Fraud Authority to keep its fraud risk assessments under review. MHCLG also confirmed that, in response to the NAO’s recommendation, it had started a feasibility study for a fraud measurement exercise.70 Managing impact of remediation on other housing priorities
Government Response Summary
The government agrees and will provide an update on the feasibility of fraud measurement by the end of 2025. Full outputs from the fraud loss measurement exercise are anticipated by Autumn 2026.
Government Response
Deferred
HM Government
Deferred
6.1 The government agrees with the Committee’s recommendation. Target implementation date: December 2025 6.2 The government will provide an update on the feasibility of fraud measurement by the end of 2025. 6.3 The government has worked extensively to ensure that the action taken for the NAO recommendation is both efficient and effective. The government reviewed the Public Sector Fraud Authority’s recommended approach for fraud loss measurement which is a highly technical process. The public sector standard to effectively complete this exercise is 18 months in length, therefore full outputs will not be available until Autumn 2026. The response and approach has been agreed with the NAO and has been indicated in the six-monthly update to the PSFA. 6.4 The government will use initial findings and continued engagement with PSFA and NAO to drive continual improvement to counter fraud controls. The government will share learning across the Ministry and with the PSFA to help prevent fraud in other programmes.