Ninth Report - Fraud and Error

The government agrees to identify and update fraud and error risks across government annually, setting an implementation date of February 2022. However, it rejects publishing individual fraud and error risks at a detailed level due to concerns about increasing overall fraud risk, instead committing to provide internal government access to the Global Fraud Risk Assessment and increase transparency on the use of Fraud Risk Assessments.

The government accepts the recommendation and sets a November 2021 target, stating that HM Treasury has mandated enhanced reporting requirements for departments on COVID-19 support scheme funds within their annual reports and accounts, and the Government Financial Reporting Manual (FReM) now requires detailed risk explanations including fraud and error.

The government accepts the recommendation and aims to implement it by February 2022, committing to introduce mandatory Fraud Impact Assessments with formal sign-off for major spend initiatives. Guidance is being developed, and Managing Public Money will be amended to require these assessments for major projects, with summaries to be published.

The government accepts the recommendation and commits to writing to the Committee by November 2021. This letter will detail how they will work with departments and across the system to build counter fraud capacity and capability.

The government agrees to the recommendation for the Cabinet Office to write to the Committee by November 2021, detailing its work with departments to address gaps and improve real-time data sharing.

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.

The government acknowledges the committee's introductory statement, confirming it received evidence from the listed departments and that this document constitutes the government's response to the report.

The government states that departments already take a risk-based approach to fraud and error, in line with best practice advocated by the Government Counter Fraud Function and supported by existing standards and guidance.

The government states that departments already take a risk-based approach to fraud and error, which aligns with best practice advocated by the Government Counter Fraud Function.

The government agrees to build on the Global Fraud Risk Assessment (GFRA) and update it annually, but will not publish fraud risks at the requested level of detail, instead providing internal government access.

The government agrees to build on and annually update the Global Fraud Risk Assessment (GFRA) with a target implementation date of February 2022, and will provide access to it across government, but rejects publishing fraud risks at a detailed level due to concerns about increasing overall risk.

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.

The government accepts the recommendation, committing to write to the Committee by November 2021 to detail how it will work with departments to build counter-fraud capacity, leveraging the Spending Review process and the Government Counter Fraud Profession.

The government accepts the recommendation and commits to writing to the Committee in November 2021 to detail how it will work with departments to build counter-fraud capacity and capability, and will review departmental capacity after the Spending Review 2021.

The government responded by outlining the existing Spending Review process for departmental fraud funding and committed that HM Treasury and the Counter Fraud Function will review counter fraud capacity following the 2021 Spending Review.

The government committed to writing to the Committee in November 2021, detailing how it will work with departments and across the system to build counter fraud capacity and capability, including close collaboration with the Government Counter Fraud Profession.

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.

The government agrees and states HMRC plans to publish detailed provisional assessments for each scheme in its annual report and accounts in autumn 2021, along with a technical note on the methodology.

The government agrees to the committee's recommendation, stating DWP is developing options for setting a fraud and error target and will write to the Committee with an update by December 2021.

The government agrees with the recommendation and has a target implementation date of November 2021. It details ongoing work with PwC to estimate fraud in the Bounce Back Loan Scheme and CBILS, and explains that work to assess fraud and error in grant schemes is underway with initial results expected by December 2021. BEIS commits to developing a proportionate risk-based approach for measuring fraud and error in later schemes and future programmes.

The government accepts the recommendation, committing to continue working with departments to increase real-time application checks and writing to the Committee by November 2021 to detail progress and future actions on real-time data sharing.

The government agrees with the recommendation to address gaps in real-time data sharing, stating it will continue to expand real-time application checks and will write to the Committee by November 2021 with details of progress and future actions.

The government explicitly disagrees with the recommendation to set out new transparency principles for government support schemes, including a presumption of publishing business beneficiaries. It cites a duty to protect the privacy of small businesses and clarifies that information is published where required, with facilities from 2021 onwards reported on a new UK transparency database.

The government agrees with the associated recommendation to address gaps in real-time data sharing, committing to increase the use and expansion of real-time application checks through the GCFF and to write to the Committee by November 2021 detailing progress and future actions.

The government agrees with the associated recommendation, committing to introduce mandatory Fraud Impact Assessments (FIAs) for major projects and high-risk schemes with formal sign-off from the Counter Fraud Function by February 2022. It will amend "Managing Public Money" guidance and develop policy official guidance to implement this.

The government agrees with the associated recommendation, committing to introduce mandatory Fraud Impact Assessments (FIAs) for major projects and high-risk schemes with formal sign-off from the Counter Fraud Function by February 2022. It will amend "Managing Public Money" guidance and develop policy official guidance to implement this.

The government states that departments already take a risk-based approach to fraud and error, in line with best practice advocated by the Government Counter Fraud Function and supported by existing standards and guidance, implying this addresses the balance between accessibility and control.

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.

The government responds by stating that departments already take a risk-based approach to fraud and error, which aligns with best practice and is supported by relevant guidelines.

The government rejected what it interpreted as a recommendation, disagreeing with the committee's implied criticism of different departmental responses to fraud and stating that DWP and HMRC strategies are closely aligned, while committing to keep practices under review.

The government agrees with the recommendation and states that the British Business Bank reviews lender recovery efforts, with BEIS holding the Bank accountable through governance meetings and monitoring performance.