7 Accepted

The PSFA told us that it now agrees annual targets for all government departments to...

Conclusion
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 Although DWP makes its own fraud reduction targets public, the bulk of departments agree targets internally with the PSFA and do not publish them.14 The PSFA also told us that these targets are set one year at a time – it does not have a longer-term target that it is aiming towards. Instead, it looks for departments to increase their impact in reducing fraud and error each year.15 Government plans to achieve savings
Government Response Summary
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.
Government Response
Accepted
HM Government Accepted
2.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2027 2.2 The Government Digital Service (GDS), PSFA and Government Finance Function (GFF) recognises the value in working together to deliver a reduction in fraud losses through data analytics. 2.3 To deliver this, and building on existing well-established working relationships, 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. 2.4 This will be composed of annual delivery plans and split across the remainder of the spending review period and align with the wider strategic vision set out in the government’s roadmap for a modern digital government, the Government Counter Fraud Functional Strategy and Shared Services Strategy for Government. 2.5 As part of this plan, the government will explore cases for deployment of AI to drive counter fraud detection and prevention, the integration of counter fraud controls into the NOVA platform and opportunities to expand the ability to share data across government for the purposes of tackling fraud.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 0.3 yrs
Report published 27 Mar 2026