Government departments have 28 data-sharing agreements to identify fraud, yet a National Audit Office report reveals inadequate focus on preventative measures. The report emphasizes the need for real-time data sharing to enhance existing processes. Currently, government data analytics mainly detects past incorrect payments rather than preventing fraud upfront. The estimated cost of fraud and errors to taxpayers falls between £55bn and £81bn for 2023-24. Challenges include poor data sharing and an absence of widespread usage of initiatives like the National Fraud Initiative, compounded by low awareness of available datasets among counter-fraud teams.
The NAO estimates that fraud and error cost the taxpayer between £55bn and £81bn in 2023-24, highlighting the fiscal impact of inadequate fraud prevention measures.
Data analytics deployed in government primarily detects potentially incorrect payments already made and lacks integration into front-line preventative controls, limiting proactive fraud prevention.
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