Fraud remains one of the biggest challenges facing the public sector, with estimated losses for fraud and error measured in the billions annually. The damage extends beyond just financial consequences: fraud erodes the public’s trust in our public services and confidence in the Government’s ability to protect taxpayers’ money. Working people across the country expect their taxes to fund the vital public services that they and their families rely upon. When that money instead ends up in the pockets of fraudsters, it undermines the principle that everyone should pay their fair share.
Fraud against the public sector occurs in many forms and includes procurement fraud, benefit fraud, fraud in the construction industry and the fraud experienced by the Government throughout the covid-19 pandemic. Tackling fraud against the public purse is the responsibility of the Public Sector Fraud Authority, whereas the Home Office is responsible for fraud against individuals and businesses. That is why I wish to inform the House about the record-breaking success of the Public Sector Fraud Authority in protecting taxpayers’ money. In the 12 months to April 2025, it has prevented £480 million from falling into the hands of fraudsters. This means the Government have millions more to invest in our plan for change.
These successes have been driven by artificial intelligence and advanced data-matching. The recently announced fraud risk assessment accelerator is part of this approach. The tool scans new policy proposals for potential fraud weaknesses and early tests show it could reduce the time to identify fraud risks by 80%, while preserving essential human oversight. The UK intends to license this technology internationally.
The Covid Counter-Fraud Commissioner has been tasked with recovering taxpayers’ money from fraudsters. Over a third of the money saved by the Public Sector Fraud Authority—£186 million—comes from tackling fraud committed during the covid-19 pandemic. The National Fraud Initiative sits in the Public Sector Fraud Authority and is also responsible for a significant amount of these savings. It has prevented over £68 million in wrongful pension payments and saved £36 million for local councils across the country.
Wider investment in counter-fraud includes the introduction of the Public Authorities (Fraud, Error and Recovery) Bill, and investment in significant measures that will deliver an estimated £9.6 billion in savings by 2030. This record-breaking year demonstrates that with the right technology, determination and leadership, we can go further, and do more, to protect taxpayers’ money while delivering the Government’s plan for change that our country needs.
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