21
Accepted
However, the PSFA also told us that there are instances where legislation, written some time...
Recommendation
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 for profiling of individuals’ behaviours. Which means in practice that data collected under that Act can be used to look for or prevent fraud, but it cannot be used for ongoing live fraud investigations. It also does not allow the data to be used to flag individuals who have previously committed fraud to inform future counter- fraud work. The PSFA told us that, in other industries, it would be standard practice to use evidence that someone has committed fraud as an indicator that they may do so again.59
Government Response Summary
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.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2027 6.2 The PSFA will review how existing legislation (for example, Digital Economy Act 2017 and the Local Audit and Accountability Act 2014), or future legislation impacts government's ability to implement counter fraud and error data analytics, and communicate its assessment to the Committee. This assessment will also be used as the basis for a government decision on additional legislation. 6.3 This review will be informed by the requirements of counter fraud teams across government, as well as an understanding of the legislative approaches undertaken internationally through the International Public Sector Fraud Forum (IPSFF).
Source
Committee
Public Accounts Committee
Report
75th Report - Government use of data analytics on error and fraud
27 Mar 2026
HC 891
Addressee Bodies
HM Treasury
Timeline
Recommendation age
0.3 yrs
Report published
27 Mar 2026