UK public sector lost £38 billion to fraud last year
23 May 2012
The public sector lost £38 billion to fraud, error and debt last year because of a "wilful ignorance" within government, it has been claimed.
Cabinet Office Minister Francis Maude hit out at the casual and uncoordinated approach across government to tackling the staggering loss of public cash.
In a stark attack on Whitehall, he also vowed to "drive out old ways of working" and insisted "resistance must be knocked down".
Addressing the Institute for Government, Mr Maude said: "Fraud, error and debt. It's incredible how uncoordinated, how casual, how wilfully ignorant Government has been about tackling losses in this area. It is only now that we have figures showing how much the public sector loses to fraud, error and debt - a staggering £38 billion last year."
27 January 2011
Minister for the Cabinet Office, Francis Maude, said;
"The latest National Fraud Authority estimate shows that 55% of fraud – a massive £21 billion - is committed against the public sector. That’s the equivalent of building 800 secondary schools, or employing over 615,000 nurses and it’s a problem that we are not going to ignore. Ripping off the taxpayer will not be tolerated.
“Contrary to what many people think, fraud and error is not just confined to benefits and revenue. It affects every Government department and impacts on the Government’s ability to deliver better public services, while stripping the civil service of vital resources. We can’t and won’t allow this to happen anymore. Our Counter Fraud Champions will begin work immediately to crack down on fraud across Government and public services.
"We know this zero tolerance approach works. The pilots being run by the Counter Fraud Taskforce, which I set up last year, are already making serious savings. HMRC has already saved £1m from stopping single person allowance fraud, where 300 people have been identified as actually living with a partner. If rolled out nationally, this exercise could save £500m - £1bn over the next 18 months.”