Background
There was between £55 billion and £81 billion of fraud and error against public funds in 2023-24. Data analytics are a vital tool to tackle fraud and error and help ensure the right amount of money goes to the right people or organisations at the right time. Data analytics uses can be ‘preventative’ meaning they stop incorrect payments going out in the first place, or ‘detective’ meaning they identify incorrect payments that have already been made.
These bodies have key roles to play:
- The Public Sector Fraud Authority, reporting to the Cabinet Office and HM Treasury, is required to provide data analytics services to the rest of government, to help tackle fraud and error.
- The Government Digital Service in the Department for Science, Innovation and Technology has responsibility for the vision, data requirements and capability needed for making data analytics work.
- HM Treasury is responsible for the government finance function which would need to take the lead if data analytics started to be embedded in first line of defence preventative financial controls.
Our work will consider how these bodies are working together to support the rest of government to make fraud and error savings through these data analytics opportunities.
Scope
The study will consider:
- how government bodies already make good use of preventative and detective data analytics to fight fraud
- whether government bodies are exploring the use of new data analytics techniques through trials and pilots
- whether central government has plans and objectives to improve the use of data analytics to fight fraud and error
- whether government understands the barriers it faces in making better use of data analytics, and whether it has a plan to address these barriers
NAO Team
Director: Joshua Reddaway
Audit Manager: Chris Barrett