Eliminating Public Sector Fraud

Author: The Counter Fraud Taskforce, Cabinet Office

Since establishing the Counter Fraud Taskforce in October 2010, I have been alarmed at the prevalence of fraud we have discovered across government. It has numerous guises such as overpayments to suppliers, fraudulently claiming benefits or false applications for public grants. HM Revenue and Customs (HMRC) estimates that there is at least £15 billion each year not paid to the Exchequer due to tax evasion. The National Fraud Authority estimates that £2.4 billion is lost to procurement fraud and £515 million is lost to grant fraud each year. The Department for Work and Pensions loses more than £1 billion each year to benefit fraud. Local government loses £2.1 billion each year to fraud. That means 3 pence of every pound spent by the Government goes to people who should not have it.

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