Covid-19 Pandemic: Cost to Public Purse of Public Procurement Fraud

3. What recent estimate he has made of the cost to the public purse of fraud in public procurement during the covid-19 pandemic.

22. What recent estimate he has made of the cost to the public purse of fraud in public procurement during the covid-19 pandemic.

As the Chancellor of the Duchy of Lancaster set out, the previous Government allowed waste and fraud to spiral out of control. Latest estimates show £10.5 billion of estimated fraud and error in the covid-19 schemes. That waste of taxpayers’ money is unacceptable and the new Government are taking action. This week the Chancellor announced that she will appoint a new covid counter-fraud commissioner. It will use every means possible to recoup public money.

I welcome the Minister and the entire ministerial team to their places. Public sector fraud underwent a massive spike during the pandemic, as personal relationships trumped proper due diligence. With billions of pounds still in the hands of fraudsters, it is imperative that the new Government work quickly to recover what was lost. I therefore also welcome the Chancellor of the Exchequer’s new covid fraud commissioner. What steps will the Government and her Department take to ensure that the money is recovered as quickly as possible, and indeed that something like this never happens again?

My hon. Friend is right that the previous Government oversaw VIP lanes that led to millions in waste, and we are still unpicking the impact of that lack of oversight. I have met the Public Sector Fraud Authority to set out my commitment to strengthening the counter-fraud approach across Government. As I have said, the counter-fraud commissioner has been introduced to support their work, and will use every means possible to recoup public money, reporting directly to the Chancellor.

In my corner of London, concerns have been expressed about a particular supplier being awarded contracts worth more than £25 million for useless PPE, after being put forward by a former Minister in the VIP lane. Could the Minister say more about how the Public Sector Fraud Authority and the Treasury will ensure that every penny that can be returned is returned to the public purse?

I am happy to meet my hon. Friend to hear more about the individual example from their constituency. As I have said, I have met the Public Sector Fraud Authority. We have set out that tackling fraud is an absolute priority for the Cabinet Office, and we will use every lever available to us to get back what is owed to the British people. The Public Sector Fraud Authority is already working closely with the Treasury on the role of the counter-fraud commissioner, and will continue to do so.