Government use of data analytics on error and fraud

Public Accounts Committee Open Inquiry
Opened: 17 Nov 2025 Parliament page
Government lost between £55bn-£81bn to fraud and error in 2023-24. There are central platforms for public bodies to use to detect error and fraud, and in the same year these generated around £400m of savings. Some have used data analytics to detect and prevent fraud and error for many years, … Read more
10 Recommendations
12 Conclusions
1 Report
1 Oral session
1 Letter
1 Event
Activity timeline 3 events
27 Mar
2026
Report published
16 Mar
2026
Correspondence
15 Jan
2026
Oral evidence
Oral evidence sessions 1 session
15 Jan 2026
View on parliament.uk
Conrad Smewing · HM Treasury Emran Mian · Department for Levelling Up, Housing and Communities Mark Cheeseman OBE · Public Sector Fraud Authority
Title HC No. Published Items Response
75th Report - Government use of data analytics on error and fraud HC 891 27 Mar 2026 22 Responded
Recommendations & Conclusions
22 results
2 Recommendation Accepted
75th Report - Government use of da…
Government’s digital and counter-fraud experts know what government needs to do to make fraud and...
Government’s digital and counter-fraud experts know what government needs to do to make fraud and error savings through data analytics, but do not have a robust plan to support public bodies to do so. There are several barriers preventing the … Read more
Government Response
GDS, PSFA and GFF will establish a co-led counter fraud data analytics action forum to agree, publish and deliver, an overarching plan that more effectively utilises data analytics to tackle fraud and error.
HM Treasury
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3 Recommendation Rejected
75th Report - Government use of da…
We are concerned that government has not built the digital capability or senior digital leadership...
We are concerned that government has not built the digital capability or senior digital leadership it needs to achieve change and bring fraud savings from data analytics. Digital transformation will require strong leadership. The government accepted the previous Committee’s September … Read more
Government Response
The government disagrees with mandating board level appointments, but acknowledges ongoing digital skills gaps and is actively using its leadership to strengthen accountability.
HM Treasury
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4 Recommendation Accepted
75th Report - Government use of da…
Government is not doing enough to promote the effective sharing of data, which is stopping...
Government is not doing enough to promote the effective sharing of data, which is stopping departments from maximising the savings they could make from data analytics. Government bodies have legal frameworks through which to share data, such as those established … Read more
Government Response
The government will provide a progress update to the Committee in six months’ time, and will also include the ongoing actions to improve the process of data sharing through the powers enabled by the Digital Economy Act (DEA).
HM Treasury
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5 Recommendation Accepted
75th Report - Government use of da…
Departments are not doing enough to be transparent or build public trust on the use...
Departments are not doing enough to be transparent or build public trust on the use of data analytics to tackle fraud. In tackling fraud, government must balance maintaining public trust by being transparent about what it is doing, with not … Read more
Government Response
DSIT is continuing to implement the mandatory rollout of the Algorithmic Transparency Recording Standard (ATRS) in central government, with over 130 records published on GOV.UK to date.
HM Treasury
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6 Recommendation Accepted
75th Report - Government use of da…
Current legislation limits government’s ability to deploy data analytics to tackle fraud and error.
Current legislation limits government’s ability to deploy data analytics to tackle fraud and error. Some existing legislation, such as the Digital Economy Act, support the use of data analytics to fight fraud and error by enabling data sharing across departments. … Read more
Government Response
The PSFA and DSIT will review legislation and the regulatory regime impacting their ability to implement fraud and error data analytics and communicate its assessment to the Committee.
HM Treasury
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1 Recommendation Accepted in Part
75th Report - Government use of da…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Science, Innovation and Technology (DSIT), the Public Sector Fraud Authority (PSFA), and the Government Finance Function (GFF) within HM Treasury.1 Read more
Government Response
The government will update the government financial reporting manual (FReM) to include a requirement for public bodies to set out in their annual reports what they are doing to tackle fraud and error, but disagrees with the publication of individual counter fraud financial targets.
HM Treasury
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7 Conclusion Accepted
75th Report - Government use of da…
The PSFA told us that it now agrees annual targets for all government departments to...
The PSFA told us that it now agrees annual targets for all government departments to reduce fraud error.12 Its latest figures from 2023–24 suggest that working towards these targets is having a tangible impact in preventing and recovering fraud losses.13 … Read more
Government Response
The government agrees and commits to establishing a co-led counter fraud data analytics action forum by March 2027 to agree, publish, and deliver an overarching plan, including annual delivery plans and exploring AI deployment and data sharing.
HM Treasury
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8 Conclusion Accepted
75th Report - Government use of da…
There are a number of issues that are undermining government’s efforts to use data analytics...
There are a number of issues that are undermining government’s efforts to use data analytics more widely to combat fraud and error. DSIT told us that that getting usable data can be difficult because they are held on legacy IT … Read more
Government Response
The government agrees with the committee's conclusion regarding data challenges and is developing a 'Discoverability Service' (expected by December 2026) to improve data sharing across government. Additionally, a new Data Asset Management Policy will be rolled out over 18 months to establish requirements for critical data asset quality, discoverability, and interoperability to tackle fraud and error.
HM Treasury
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9 Recommendation Accepted
75th Report - Government use of da…
We recommended in March 2025 that government’s planned digital and AI roadmap should be underpinned...
We recommended in March 2025 that government’s planned digital and AI roadmap should be underpinned by a implementation plan with clear accountabilities, delivery milestones, and metrics to allow progress to be tracked.19 The NAO report echoed this, further recommending that … Read more
Government Response
The government agrees with the recommendation and commits to establishing a co-led counter fraud data analytics action forum by March 2027. This forum will agree, publish, and deliver an overarching plan, including exploring AI deployment and expanding data sharing across government to tackle fraud and error.
HM Treasury
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10 Conclusion Accepted in Part
75th Report - Government use of da…
The previous Committee recommended in September 2023 that all Departments should appoint at least one...
The previous Committee recommended in September 2023 that all Departments should appoint at least one non-executive director with relevant digital, data and technology transformation expertise to their Board.22 This recommendation is reflected in the Government’s new Roadmap for modern digital … Read more
Government Response
The government disagrees with mandating board-level digital appointments due to lack of statutory powers but is actively setting expectations, implementing reporting on digital leaders, and working with departments to identify suitable candidates to achieve the desired outcome.
HM Treasury
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11 Conclusion Accepted
75th Report - Government use of da…
The Cabinet Office told us in March 2025 that, to achieve annual savings of up...
The Cabinet Office told us in March 2025 that, to achieve annual savings of up to £500 million by reducing the need for digital consultants, it was aiming for 10% of civil servants to have digital expertise.25 Only 5.5% of … Read more
Government Response
The government agrees and will publish the Digital Workforce 2030 plan of action in June 2026, outlining how it will meet the target of 10% digitally trained civil servants. DSIT is also working with the Treasury to improve flexibility for recruitment and refining the Digital and Data Pay Framework.
HM Treasury
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12 Conclusion Accepted
75th Report - Government use of da…
At present much work on sharing best practice and increasing digital and counter-fraud capability across...
At present much work on sharing best practice and increasing digital and counter-fraud capability across government is carried on through networks and communities of practice, though not all colleagues who might benefit from these sessions are in attendance.29 The PSFA … Read more
Government Response
The government agrees with the recommendation and aims to implement it by March 2027. It will establish a co-led counter-fraud data analytics action forum, publish an overarching plan to utilise data analytics, and explore AI deployment and data sharing across government.
HM Treasury
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13 Conclusion Accepted
75th Report - Government use of da…
As confirmed in January 2025’s Blueprint for modern digital government policy paper, cross-government digital leadership...
As confirmed in January 2025’s Blueprint for modern digital government policy paper, cross-government digital leadership now resides with DSIT.32 The blueprint included a plan to raise the status of the Government Chief Digital Officer to second permanent secretary-level. DSIT told … Read more
Government Response
The government agrees with the Committee's observation, stating the recommendation has been implemented. It confirms that DSIT’s Permanent Secretary now leads the digital and data profession and function, supported by two directors-general, thereby embedding digital leadership at the top level.
HM Treasury
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14 Conclusion Accepted
75th Report - Government use of da…
The Digital Economy Act 2017 established a process through which government bodies can agree arrangements...
The Digital Economy Act 2017 established a process through which government bodies can agree arrangements to share data with one another. The NAO reported that, as of July 2025, there had been 28 data-sharing pilot agreements set up through this … Read more
Government Response
The government agrees with the committee's observation. It commits to developing a central list of counter fraud data analytics controls by September 2026 and to improving data sharing processes under the Digital Economy Act, including a review of the Code of Practice.
HM Treasury
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15 Recommendation Accepted
75th Report - Government use of da…
The National Fraud initiative (NFI) is a tool created in 1996 that brings data together...
The National Fraud initiative (NFI) is a tool created in 1996 that brings data together from across the public sector to help bodies look for fraud and, to a lesser extent, for error. The NFI was originally focused on local … Read more
Government Response
The government agrees with the recommendation to mandate the National Fraud Initiative for central government departments, setting a target implementation date of March 2027, while the PSFA assesses the impact and routes for mandating.
HM Treasury
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16 Conclusion Accepted
75th Report - Government use of da…
The NAO report noted that, at present, there is no available library of counter-fraud tools...
The NAO report noted that, at present, there is no available library of counter-fraud tools and examples for government bodies to refer to.45 It recommended that the PSFA should maintain a library of digital counter- fraud control that public bodies … Read more
Government Response
The government agrees with the recommendation to maintain a library of counter-fraud tools, stating a target implementation date of September 2026. The PSFA's Data and Analytics Team is developing this central list and will provide a progress update in six months, alongside ongoing work on data sharing and a new Data Asset Management Policy.
HM Treasury
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17 Conclusion Accepted
75th Report - Government use of da…
The PSFA told us that it is important to use data to fight fraud, and...
The PSFA told us that it is important to use data to fight fraud, and to maintain public trust that government bodies are holding their data in accordance with Parliament’s intentions.49 The C&AG told us that, while transparency in government … Read more
Government Response
The government states the recommendation is implemented and describes its ongoing mandatory rollout of the Algorithmic Transparency Recording Standard (ATRS). DSIT is continuing to publish records, track compliance through its roadmap, and commissions departments twice a year to map new tools, also ensuring guidance on sensitive tools.
HM Treasury
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18 Conclusion Accepted
75th Report - Government use of da…
To ensure transparency, government bodies are required to disclose the use of algorithms, AI and...
To ensure transparency, government bodies are required to disclose the use of algorithms, AI and machine learning through the Algorithmic Transparency Recording Standard (ATRS) hub.52 As at February 2026 the hub, which requires records of any such items used in … Read more
Government Response
The government states the recommendation is implemented and describes its ongoing mandatory rollout of the Algorithmic Transparency Recording Standard (ATRS). DSIT is continuing to publish records, track compliance through its roadmap, and commissions departments twice a year to map new tools.
HM Treasury
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19 Conclusion Accepted
75th Report - Government use of da…
The NAO noted that DWP provided an example of good practice in transparency by setting...
The NAO noted that DWP provided an example of good practice in transparency by setting out in its annual report and accounts how it ensures that its use of data analytics does not result in adverse impacts 49 Q 37 … Read more
Government Response
The government states the recommendation is implemented and describes its ongoing mandatory rollout of the Algorithmic Transparency Recording Standard (ATRS). DSIT is continuing to publish records, track compliance through its roadmap, and commissions departments twice a year to map new tools, also ensuring guidance on sensitive tools for fraud detection.
HM Treasury
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20 Conclusion Accepted
75th Report - Government use of da…
The PSFA told us that current legislation, for example the Digital Economy Act 2017 mentioned...
The PSFA told us that current legislation, for example the Digital Economy Act 2017 mentioned previously, is an essential foundation for the use of data analytics to fight fraud and error. That Act provided a mechanism which enabled government bodies … Read more
Government Response
The government agrees with the committee's observation on the Digital Economy Act (DEA) and is undertaking ongoing actions to improve data sharing through the DEA's powers. This includes simplifying data sharing pilot processes using AI and reviewing the DEA Code of Practice for more streamlined pilots, with a progress update expected in six months.
HM Treasury
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21 Recommendation Accepted
75th Report - Government use of da…
However, the PSFA also told us that there are instances where legislation, written some time...
However, the PSFA also told us that there are instances where legislation, written some time ago, does not fully support the effective deployment of modern data analytics techniques. For example, the Local Audit and Accountability Act 2014 does not allow … Read more
Government Response
The government agrees with the recommendation and commits by March 2027 to a PSFA review of how existing legislation, including the Local Audit and Accountability Act 2014, impacts the ability to implement counter-fraud data analytics. This assessment will be used to inform a government decision on additional legislation.
HM Treasury
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22 Recommendation Accepted
75th Report - Government use of da…
Legislation also requires that data collected as part of the National Fraud Initiative, enabled by...
Legislation also requires that data collected as part of the National Fraud Initiative, enabled by the Local Audit and Accountability Act, can only be retained for the two years – the duration of each biennial exercise. The PSFA told us … Read more
Government Response
The government agrees with the recommendation and commits by March 2027 to a review by the PSFA of how existing or future legislation impacts the ability to implement counter-fraud data analytics. This assessment will inform a government decision on additional legislation.
HM Treasury
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Government Response AI assessment · 22 of 10 classified
Accepted 19
Accepted in Part 2
Rejected 1
Total 10 recs + 12 conclusions
Correspondence 1 letter
16 Mar 2026 To committee Letter from the Chief Executive of the Cabinet Office relating to Follow Up - Estimation of counter fraud outcomes following legislative changes, 12 March 2026
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