Feeds

Whitehall fraud pilots save £12m

Just £20,988m to go. This year

The Power of One Infographic

The Cabinet Office says data-matching has helped its anti-fraud initiatives to stem huge losses from government funds.

The government has said that three pilot projects aimed at tackling the £21bn lost each year through fraud and error have delivered £12m worth of savings in their first few months.

According to an interim report (22-page PDF/486KB) by the department, a pilot at HM Revenue and Customs (HMRC), which ran between September 2010 and March 2011, prevented the loss of £10.63m. It used "a new screening technique" for tax applications, and by analysing information on tax credit application forms, assessed the likelihood of the application being fraudulent.

The Cabinet Office said that this enabled HMRC to better prioritise its counter-fraud checks, and that HMRC expects to save £256m over the next four years by rolling the technique out across all new tax credit applications.

At the Department for Transport (DfT), £500,000 has been saved by identifying losses from payments made to suppliers. The report says the DfT commissioned a data analytics company to audit its group procure-to-pay systems, to detect and recover overpayments to suppliers.

The Cabinet Office also disclosed that the Home Office undertook the same exercise and detected £4m in overpayments. Applying these techniques across all departments could identify and recover £264m on just one year of spending, it believes.

A third pilot which used credit reference agencies to verify the circumstances of 20,000 benefit and tax credit claimants has saved HMRC £1.5m and the Department for Work and Pensions £500,000.

The pilots are part of the work of the Taskforce on Fraud, Error and Debt, set up by the coalition government in 2010 to create a cross-Whitehall group to address losses.

The interim report calls for greater sharing of information between procuring departments on companies which routinely overcharge, and on false identities.

Francis Maude, the Cabinet Office minister, said: "The taskforce has made a good start and has already demonstrated that immediate cashable savings can be made from doing fairly simple common sense checks. Going forward we must take this further and work together to combat fraud across all public sector organisations."

This article was originally published at Guardian Government Computing.

Guardian Government Computing is a business division of Guardian Professional, and covers the latest news and analysis of public sector technology. For updates on public sector IT, join the Government Computing Network here.

Maximizing your infrastructure through virtualization

More from The Register

next story
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Sit back down, Julian Assange™, you're not going anywhere just yet
Swedish court refuses to withdraw arrest warrant
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
MPs wave through Blighty's 'EMERGENCY' surveillance laws
Only 49 politcos voted against DRIP bill
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Delaware pair nabbed for getting saucy atop Mexican eatery
Burrito meets soft taco in alleged rooftop romp outrage
LightSquared backer sues FCC over spectrum shindy
Why, we might as well have been buying AIR
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Mobile application security vulnerability report
The alarming realities regarding the sheer number of applications vulnerable to attack, and the most common and easily addressable vulnerability errors.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.