UK Inquiry Tracker

Fraud and Error

Public Accounts Committee Closed Inquiry

Opened: 23 Mar 2021 Closed: 16 Nov 2021 Parliament page

Before the COVID-19 pandemic, the Government Counter Fraud Function estimated that the level of fraud and error against government was already between £29.3 billion and £51.8 billion annually. The National Audit Office’s work over the past year has shown that the risk of fraud and error has risen significantly during … Read more

16 Recommendations

15 Conclusions

1 Report

1 Oral session

6 Letters

1 Event

Activity timeline 9 events

14 Dec
2021

Correspondence

Correspondence from Mark Cheeseman, Director of the Government Counter Fraud Function, Cabinet Office, re PAC Fraud and Error, dated 3 Dece…

14 Dec
2021

Correspondence

Correspondence from Sarah Munby, Permanent Secretary, Department for Business, Energy & Industrial Strategy, re Covid Support Schemes – PAC…

28 Oct
2021

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Ninth report from Session 2021-22

25 Oct
2021

Correspondence

Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, re HMRC Error and Fraud – PAC Error and Fraud Report Recommen…

30 Jun
2021

Report published

Ninth Report - Fraud and Error

25 May
2021

Correspondence

Correspondence from Mark Cheeseman, Director of the Government Counter Fraud Function, Cabinet Office, re Follow up on Fraud and Error, dat…

25 May
2021

Correspondence

Correspondence from George Turner, Director, TaxWatch, re Response to Fraud and Error session on Thursday 29 April 2021, dated 18 May 2021

18 May
2021

Correspondence

Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, re HMRC questions, dated 7 May 2021

29 Apr
2021

Oral evidence

Fraud and Error

Oral evidence sessions 1 session

29 Apr 2021

View on parliament.uk

Fraud and Error

Cat Little · Cabinet Office Jim Harra · HMRC Mark Cheeseman · Cabinet Office Peter Schofield · Department for Work and Pensions Sarah Munby · Department for Business, Energy and Industrial Strategy

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Ninth Report - Fraud and Error	HC 253	30 Jun 2021	31	Responded

Recommendations & Conclusions

4 results

7 Recommendation Not Addressed

Ninth Report - Fraud and Error

HMRC, DWP and BEIS are unable to justify the inconsistencies in their approaches to the...

HMRC, DWP and BEIS are unable to justify the inconsistencies in their approaches to the consequences of fraud and error for different groups of debtors. Departments need to take steps to detect, pursue and recover the billions of pounds of … Read more HMRC, DWP and BEIS are unable to justify the inconsistencies in their approaches to the consequences of fraud and error for different groups of debtors. Departments need to take steps to detect, pursue and recover the billions of pounds of fraud and error overpayments it has lost during the COVID-19 pandemic. However, we are concerned that Departments are taking different approaches to dealing with the consequences of fraud or errors of a similar nature, such as failing to disclose a change in circumstances. DWP applies a financial threshold when deciding whether to pursue criminal sanctions, whereas HMRC will only pursue criminal proceedings for the most serious crimes, focusing instead on disrupting criminal activity to make it unprofitable. Although BEIS is working with the police on criminal sanctions for loan scheme fraud, it maintains it is up to the bank to follow usual recovery procedures in the first instance. These differences in approaches results in penalties appearing unfair and inconsistent to the public. DWP is investing in making it easier for people inform it of changes in circumstances, for example through more online prompts in systems, rather than assuming fraudulent intent. We welcome the Cabinet Office’s commitment to, through the Counter Fraud Function, improving the consistency of sanctions applied for fraud and whether enforcement and recovery powers can be expanded across government. Recommendation: HMRC and DWP should write to the Committee within three months setting out how they will identify and address inconsistencies of sanctions for frauds that are similar in nature. BEIS should write to the Committee within three months setting out details of steps it will take to assess whether the recovery efforts of banks are reasonable, and the steps it will take to recover taxpayers’ money if deficiencies are identified. Fraud and Error 9 1 Government’s understanding of fraud and error risks and the resources needed to tackle them Show less

Government Response

The government's response is irrelevant, referencing reports on the English Rail System rather than addressing the recommendation for HMRC, DWP, and BEIS to detail how they will address fraud sanction inconsistencies and recovery efforts.

HM Treasury

View details

12 Conclusion Not Addressed

Ninth Report - Fraud and Error

It also assessed a large number of other COVID-19 schemes as potentially at high risk...

It also assessed a large number of other COVID-19 schemes as potentially at high risk of fraud but believed scheme owners needed to do more work to fully quantify those risks.32 Counter fraud resources across government

Government Response

The government response provided addresses a different PAC recommendation regarding the identification and publication of fraud risks, rather than the committee's specific conclusion about high-risk COVID-19 schemes and the need for scheme owners to quantify those risks.

HM Treasury

View details

17 Conclusion Not Addressed

Ninth Report - Fraud and Error

The Counter Fraud Function describes fraud as a hidden crime which you must find before...

The Counter Fraud Function describes fraud as a hidden crime which you must find before you can fight.41 The government’s counter-fraud functional strategy states an aim to be the most transparent government globally in dealing with public sector fraud.42 Cabinet … Read more

Government Response

The government's response focused on its plans to increase the use of real-time application checks and improve data sharing across departments, without directly addressing the committee's conclusion about transparency and annual fraud reporting.

HM Treasury

View details

28 Conclusion Not Addressed

Ninth Report - Fraud and Error

We asked DWP how it balanced the need to protect taxpayers’ money with the speed...

We asked DWP how it balanced the need to protect taxpayers’ money with the speed and accessibility of support schemes. DWP told us that Universal Credit was a good example of balancing these needs as applications normally rely on people … Read more

Government Response

The response provides a general statement about departments taking a risk-based approach to fraud and error, failing to address the specific DWP processes, verification issues, or the team reviewing past cases mentioned in the conclusion.

HM Treasury

View details

Government Response AI assessment · 31 of 16 classified

Accepted 20

Accepted in Part 3

Acknowledged 1

Deferred 1

Not Addressed 4

Rejected 2

Total 16 recs + 15 conclusions

Correspondence 6 letters

14 Dec 2021 Correspondence from Mark Cheeseman, Director of the Government Counter Fraud Function, Cabinet Office, re PAC Fraud and Error, dated 3 December 2021

Parliament page

14 Dec 2021 Correspondence from Sarah Munby, Permanent Secretary, Department for Business, Energy & Industrial Strategy, re Covid Support Schemes – PAC Fraud and Error Report Recommendations, dated 7 December 2021

Parliament page

25 Oct 2021 Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, re HMRC Error and Fraud – PAC Error and Fraud Report Recommendation 3c, dated 24 September 2021

Parliament page

25 May 2021 Correspondence from Mark Cheeseman, Director of the Government Counter Fraud Function, Cabinet Office, re Follow up on Fraud and Error, dated 17 May 2021

Parliament page

25 May 2021 Correspondence from George Turner, Director, TaxWatch, re Response to Fraud and Error session on Thursday 29 April 2021, dated 18 May 2021

Parliament page

18 May 2021 Correspondence from Jim Harra, Chief Executive and First Permanent Secretary, re HMRC questions, dated 7 May 2021

Parliament page