Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the Department for Science, Innovation & Technology:
To ask the Secretary of State for Science, Innovation and Technology, what steps her Department and its predecessor Department have taken to reduce the costs of error in the last three financial years.
Answered by Andrew Griffith - Shadow Secretary of State for Science, Innovation and Technology
The Department for Science, Innovation and Technology (DSIT) was established on 7th February 2023. Prior to this date the portfolio for DSIT sat within the Department for Business, Energy & Industrial Strategy (BEIS). The published BEIS Annual Report & Accounts provide a summary of counter fraud activity and respective costs related to fraud. The Cross-Government Fraud Landscape Annual Report 2022 highlights the latest available data relating to fraud and error across government.
The Government is proud of its record in proactively seeking to find and prevent more fraud in the system. We have established the dedicated Public Sector Fraud Authority (PSFA). In its first year it delivered £311 million in audited counter fraud benefits.
Due to the Machinery of Government changes, the Department for Science, Innovation and Technology have not yet produced fraud and error estimates, but this will be published in the 23/24 annual report and accounts.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps his Department has taken to reduce the costs of error in the last three financial years.
Answered by Anthony Browne
The Department was recently requested to set out the steps it has taken to reduce the costs of fraud in the last three financial years: this response is provided in the Annex below. The Public Sector Fraud Authority (PSFA) defines the difference between fraud and error in relation to the dishonest intent of the individual or organisation involved in the incorrect payment. “Fraud” represents losses to the Department caused with intent by a counterparty. “Error” represents losses to the Department where intent cannot be proven. As the difference between fraud and error relates to the established intent of the counterparty rather than the activity itself, the Department has a single controls and assurance regime over fraud and error, which is set out in the Annex below.
In addition, the Department operates business-as-usual transactional and analytical controls to mitigate and detect risk of financial error caused by administrative errors.
Annex A – Parliamentary Question 22574 To ask the Secretary of State for Transport, what steps his Department has taken to reduce the costs of fraud in his Department in the last three financial years.
Response provided on 23 April 2024
Since the establishment of the Public Sector Fraud Authority (PSFA) in 2022, the Department has been working closely with PSFA to implement the Counter Fraud Functional Standard framework, a common set of standards required by government departments to counter fraud, bribery, and corruption. To support compliance with the Functional Standard, the Department internally published its Counter Fraud, Bribery and Corruption Strategy for 2022-2025 to improve culture and awareness and build on the counter fraud activity delivered since the launch of DfT’s first strategy in 2019.
The following key activities have taken place to drive improvements in reducing fraud by improving detection activity, enhancing fraud prevention and building capability.
To support detection activity the department utilises Spotlight, a due diligence tool provided to departments by the Cabinet Office to help identify areas of risk and potential fraud and error. The department has also commenced a data analytics project utilising artificial intelligence to identify instances of fraud and error within high-risk spending areas. This initiative is providing comprehensive insights into fraudulent activities and errors that can be used to further strengthen controls and seek recovery of funds where fraud or error is identified. The Department’s contract management teams have furthermore increased their focus on fraud risks and detection, resulting in substantial sums recovered and returned to the Exchequer. Detected, prevented and recovered fraud is formally disclosed to the Cabinet Office who report publicly on these results across government in their annual Fraud Landscape Report.
On fraud prevention, a Fraud Risk Assessment (FRA) policy was introduced to enable accountable officers across DfT to take responsibility in ensuring that fraud, bribery, and corruption risks are adequately understood and effectively managed. The FRA process has been embedded into business-as-usual activity and has supported the department in identifying fraud risks, driving control improvements, and fostering continuous improvement in fraud risk management practices.
To build capability DfT has increased its engagement with the PSFA to enhance oversight, prioritisation of risks, delivery against counter fraud functional standards and sharing of best practice. We have increased our collaboration across the departmental group and across government networks to share lessons learnt, horizon scan for new and emerging trends and deliver collaborative best practice workshops, training sessions and awareness campaigns on areas of development e.g. risk assessment.
In 2023 and early 2024, DfT was one of the first departments assessed under the latest framework by PSFA for compliance against the Counter Fraud Functional Standard. The Department is now working with PSFA to take forwards the recommendations from this review to drive further improvements in the Department’s counter-fraud function.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, what steps his Department has taken to reduce the costs of error in the last three financial years.
Answered by Simon Hoare
Details of measures the department is taking to prevent fraud and error are set out in the department’s annual accounts.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the Department for Science, Innovation & Technology:
To ask the Secretary of State for Science, Innovation and Technology, what steps her Department and its predecessor Department have taken to reduce the costs of fraud in the Department in the last three financial years.
Answered by Andrew Griffith - Shadow Secretary of State for Science, Innovation and Technology
The Department for Science, Innovation and Technology (DSIT) was established on 7th February 2023. Prior to this date the portfolio for DSIT sat within the Department for Business, Energy & Industrial Strategy (BEIS). The published BEIS Annual Report & Accounts provide a summary of counter fraud activity and respective costs related to fraud. The Cross-Government Fraud Landscape Annual Report 2022 highlights the latest available data relating to fraud and error across government.
Presently, as for all Government Departments, DSIT counter fraud activity is governed by Government Functional Standards for Counter Fraud, covering both proactive and reactive counter fraud activity, and set out by the Government Counter Fraud Function (GCFF). Adherence to standards is monitored and reviewed by the Public Sector Fraud Authority (PSFA).
In 2022/23 the PSFA set a target of delivering £180 million of savings to the taxpayer. In fact, the PSFA far surpassed this within the first 12 months by preventing and recovering £311 million. As it enters its second year, the PSFA has a target of achieving £185 million of savings for the taxpayer.
The Government has also announced an additional £34 million to deploy cutting edge tools and Artificial Intelligence tools to help combat fraud across the public sector, saving £100 million for the public purse. This is in addition to existing partnerships between PSFA and the tech sector.
The Government is determined to uncover fraud in the public sector and is proud of its record.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the Department for Transport:
To ask the Secretary of State for Transport, what steps his Department has taken to reduce the costs of fraud in his Department in the last three financial years.
Answered by Anthony Browne
Since the establishment of the Public Sector Fraud Authority (PSFA) in 2022, the Department has been working closely with PSFA to implement the Counter Fraud Functional Standard framework, a common set of standards required by government departments to counter fraud, bribery, and corruption. To support compliance with the Functional Standard, the Department internally published its Counter Fraud, Bribery and Corruption Strategy for 2022-2025 to improve culture and awareness and build on the counter fraud activity delivered since the launch of DfT’s first strategy in 2019.
The following key activities have taken place to drive improvements in reducing fraud by improving detection activity, enhancing fraud prevention and building capability.
To support detection activity the department utilises Spotlight, a due diligence tool provided to departments by the Cabinet Office to help identify areas of risk and potential fraud and error. The department has also commenced a data analytics project utilising artificial intelligence to identify instances of fraud and error within high-risk spending areas. This initiative is providing comprehensive insights into fraudulent activities and errors that can be used to further strengthen controls and seek recovery of funds where fraud or error is identified. The Department’s contract management teams have furthermore increased their focus on fraud risks and detection, resulting in substantial sums recovered and returned to the Exchequer. Detected, prevented and recovered fraud is formally disclosed to the Cabinet Office who report publicly on these results across government in their annual Fraud Landscape Report.
On fraud prevention, a Fraud Risk Assessment (FRA) policy was introduced to enable accountable officers across DfT to take responsibility in ensuring that fraud, bribery, and corruption risks are adequately understood and effectively managed. The FRA process has been embedded into business-as-usual activity and has supported the department in identifying fraud risks, driving control improvements, and fostering continuous improvement in fraud risk management practices.
To build capability DfT has increased its engagement with the PSFA to enhance oversight, prioritisation of risks, delivery against counter fraud functional standards and sharing of best practice. We have increased our collaboration across the departmental group and across government networks to share lessons learnt, horizon scan for new and emerging trends and deliver collaborative best practice workshops, training sessions and awareness campaigns on areas of development e.g. risk assessment.
In 2023 and early 2024, DfT was one of the first departments assessed under the latest framework by PSFA for compliance against the Counter Fraud Functional Standard. The Department is now working with PSFA to take forward the recommendations from this review to drive further improvements in the Department’s counter-fraud function.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps his Department has taken to reduce the costs of fraud in his Department in the last three financial years.
Answered by Paul Maynard
We are committed to tackling fraud which is why in May 2022 the Department launched a robust plan to drive down fraud and error from the benefits system, alongside investment of £900 million that will deliver £2.4 billion of savings by the end of 2024/25. This plan includes proposed powers to require the transfer of data from third-parties, which has been introduced as part of the Data Protection and Digital Information Bill (No.2). This legislation is forecast to save up to an additional £600m over the Treasury scorecard period. The Department has set out a target to deliver £1.3bn in savings from our dedicated counter-fraud and error resource in 2023/24 as set out in the department’s Annual Reports and Accounts.
Asked by: Jonathan Ashworth (Labour (Co-op) - Leicester South)
Question to the Ministry of Housing, Communities and Local Government:
To ask the Secretary of State for Levelling Up, Housing and Communities, what steps his Department has taken to reduce the costs of fraud in his Department in the last three financial years.
Answered by Simon Hoare
The Government is determined to uncover fraud in the public sector and is proud of its record.
As part of this, the Government established the Public Sector Fraud Authority (PSFA). In 22/23 the PSFA set a target of delivering £180 million of savings to the taxpayer. In fact the PSFA far surpassed this within the first 12 months by preventing and recovering £311 million. As it enters its second year, the PSFA has a target of achieving £185 million of savings for the taxpayer.
The Government has also announced an additional £34 million to deploy cutting edge tools and Artificial Intelligence tools to help combat fraud across the public sector, saving £100 million for the public purse. This is in addition to existing partnerships between PSFA and the tech sector.