Commons Sense

House of Commons · Ministers' Questions

Government Departments and Agencies: Fraud and Error

Thursday 25 July 2024 · 6 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 5 Not answered 0

Key points

  • Government estimates of the cost to the public purse from fraud and error in Government departments and agencies range between 40 billion and almost 60 billion.
  • The Department will work closely with the Treasury to ensure that money lost through fraudulent practices is recovered, using every means possible to secure best value for money.
  • The Department is exploring the use of AI technologies, including a single network analytics platform, to detect and root out fraud, though this is at an early stage of implementation.

Topics (select to filter)

Questions & Answers

Q1 Rupa Huq Lab Ealing Central and Acton
Taxation
Context

The MP asked about the recent estimate of the cost to the public purse due to fraud and error within government departments.

Question

What recent estimate has been made of the cost to the public purse of fraud and error in Government departments and agencies?

Answer from Pat McFadden

Government estimates vary hugely, with a range between £40 billion and almost £60 billion. The Chancellor announced the establishment of a covid corruption commissioner to track down as much as possible of the money lost to fraud during the pandemic.

Partly answered

Not addressed: The specific ask about an estimate was addressed, but no precise figure was provided.

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Q2 Tom Rutland Lab East Worthing and Shoreham
Taxation
Context

The MP highlighted the estimated £7.6 billion cost of covid contract fraud, mentioning VIP lanes for dodgy contracts.

Question

With the Chancellor announcing a new covid fraud commissioner this week, can the Minister outline how his Department will work with the Treasury to ensure that money lost through fraudulent practices is recovered?

Answer from Pat McFadden

My hon. Friend is right; we will do everything possible to recover funds, and my Department will work closely with the Treasury on this issue to ensure best value for the taxpayer.

Partly answered

Not addressed: The specific ask about an outline was not provided in detail.

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Q3 Christopher Vince Lab Co-op Harlow
Science & Technology Standards & Ethics
Context

The MP emphasized the role of AI in tackling public sector fraud and highlighted outdated legacy systems.

Question

How will the Minister implement new technologies, including artificial intelligence, to tackle fraud and error in government?

Answer from Pat McFadden

There is potential for greater AI use in detecting and rooting out fraud. We have a single network analytics platform as an AI-based detection tool, but we are at the beginning of what can be achieved.

Partly answered

Not addressed: The specific ask about implementation details was not addressed in detail.

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Q4 Rupa Huq Lab Ealing Central and Acton
Economy Benefits & Welfare Standards & Ethics
Context

The MP mentioned the £58.5 billion cost of non-covid error, fraud, and waste in 2020-21.

Question

How will colossal sums of money lost to non-covid error, fraud, and waste be recovered? What measures will prevent cronyism and nepotism?

Answer from Pat McFadden

We cannot afford to be dismissive: we take it seriously, using every means possible to secure best value for money. The previous Government's record was described as 'woeful' with 'schoolboy errors'.

Partly answered

Not addressed: The specific ask about recovery methods and prevention measures was not addressed in detail.

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Q5 Wendy Chamberlain Lib Dem North East Fife
Care & Healthcare Workers Benefits & Welfare
Context

The MP highlighted issues with overpayments and subsequent recovery from unpaid carers due to system failures.

Question

What is being done to ensure that Government systems prevent overpayments and support carers affected by such errors?

Answer from Pat McFadden

We are hugely appreciative of the job carers do, balancing this with proper use of public funds. Overpayments need recovery but should be done compassionately.

Not addressed: The specific ask about measures to stop overpayment issues was not addressed concretely.

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Q6 Jim Shannon DUP Strangford
Northern Ireland Standards & Ethics
Context

The MP asked about statistics for Northern Ireland on the costs of fraud and error to public funds.

Question

Does the Minister hold specific breakdowns for Northern Ireland on costs of fraud and error, and what discussions will be had with devolved institutions?

Answer from Pat McFadden

I have not seen a specific breakdown but take relations with Northern Ireland extremely seriously. The Prime Minister visited to discuss these issues.

Partly answered

Not addressed: The specific ask about details on any breakdowns and discussions was not provided in detail.

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