To match an exact phrase, use quotation marks around the search term. eg. "Parliamentary Estate". Use "OR" or "AND" as link words to form more complex queries.

Keep yourself up-to-date with the latest developments by exploring our subscription options to receive notifications direct to your inbox

Written Question
Fraud
Monday 7th February 2022

Asked by: Pat McFadden (Labour - Wolverhampton South East)

Question to the Cabinet Office:

To ask the Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office, how much (a) has been lost from the public purse as a result of fraud, scams and economic crime and (b) has been recovered to the public purse having been lost to fraud, scams and economic crime in each of the last five years.

Answered by Michael Ellis

The government publishes an Annual Fraud Landscape Report or Bulletin. The 2019/20 Fraud Landscape Bulletin states that our best estimate of the total fraud and error losses to the government is between £29bn and £52bn per year. This is an estimate built from the best available evidence on fraud and error loss.

HMRC produces annual estimates of loss (Measuring Tax Gaps) based on statistical sampling. The closest fit to fraud and economic crime are the criminal attacks and evasion categories. HMRC also produces a loss estimate for tax credits - this is made up of fraud and error - not just fraud. Since 2017 (1), HMRC has reported ‘additional tax generated,’ which is made up of a wide range of compliance activities to recover due tax, not all related to fraud. With regards to serious tax fraud, the HMRC Fraud Investigation Service has recovered over £1bn of criminal assets using a combination of both civil and criminal recovery powers over the last 5 years.

15/16

16/17

17/18

18/19

19/20

HMRC Criminal Attacks and Evasion + Tax Credit Estimated loss

£11.3bn

£11.6bn

£10.8bn

£11.2bn

£11.6bn

HMRC Additional Tax Generated

n/a

n/a

£26.1bn

£29.3bn

£31.8bn

DWP produces annual estimates of the fraud and error in the benefit system based on statistical sampling. The losses are apportioned between fraud and error. DWP also produces figures on recoveries of overpaid benefit each year, however, is it not possible to break this down to just fraud - it is made up of fraud, claimant error and official error. DWP’s reporting includes 2020/21 which shows a marked increase in loss level post-pandemic.

16/17

17/18

18/19

19/20

20/21

DWP Estimated Value of Fraud and Error

£3.6bn

£3.8bn

£3.9bn

£4.6bn

£8.4bn

DWP Estimated Value of Fraud

£2.0bn

£2.2bn

£2.1bn

£2.8bn

£6.3bn

DWP Recovered Fraud and Error (Official and Claimant)

£1.1bn

£1.1bn

£1.1bn

£1.0bn

£800m

The ‘rest of government’ (e.g. not HMRC and DWP) report detected fraud and recoveries through centrally and this is published in the Government’s Annual Fraud Landscape Report or Bulletin. Information on fraud recoveries was not collected until 2016/17. The rest of government figures are below:

15/16

16/17

17/18

18/19

19/20 (2)

Rest of Govt Detected Fraud

£73.6m

£119m

£151m

£99m

£227m

Rest of Govt Recovered Fraud

n/a

n/a

£12m

£22m

£26m

(1) The CCG (Customer Compliance Group) was created in 2017, hence the inability to report previous figures.

(2) The 19/20 figures largely predate Covid-related fraud.

Speech in Commons Chamber - Mon 06 Sep 2021
Afghanistan

"Our troops did a great job at Kabul airport, but the events of recent weeks have exposed the limitations of our ability to act outwith the umbrella of the United States, even if we wanted to choose a different path. What is the Prime Minister’s response to the exposure of …..."
Pat McFadden - View Speech

View all Pat McFadden (Lab - Wolverhampton South East) contributions to the debate on: Afghanistan
Speech in Commons Chamber - Wed 18 Aug 2021
Afghanistan

"The actions of our armed forces, those of the United States and other allies, and the Afghan forces themselves have made a big difference to the lives of people in Afghanistan over the past 20 years. We have heard a lot today about the importance of education for millions of …..."
Pat McFadden - View Speech

View all Pat McFadden (Lab - Wolverhampton South East) contributions to the debate on: Afghanistan
Speech in Commons Chamber - Mon 02 Nov 2020
Covid-19 Update

"What is the Prime Minister and the Chancellor’s estimate of the additional economic cost of implementing this second lockdown now, for four weeks or possibly more in the run-up to Christmas, compared with implementing it for two weeks when the Scientific Advisory Group for Emergencies first recommended it back on …..."
Pat McFadden - View Speech

View all Pat McFadden (Lab - Wolverhampton South East) contributions to the debate on: Covid-19 Update
Speech in Commons Chamber - Mon 12 Oct 2020
Covid-19 Update

"Whatever new restrictions are introduced in each of the three tiers that the Prime Minister has announced, it is essential that we do everything we can to keep children at school and keep children learning. With that in mind, will he ensure that, where a positive case is identified in …..."
Pat McFadden - View Speech

View all Pat McFadden (Lab - Wolverhampton South East) contributions to the debate on: Covid-19 Update
Speech in Commons Chamber - Thu 27 Feb 2020
European Union: Future Relationship

"The Minister’s statement and the document published today show that the Government have made a fundamental choice, which is to prioritise sovereignty over any economic argument or consequence for either goods or services. Is there not a danger, however, that having made that choice, the Government will impose long-term economic …..."
Pat McFadden - View Speech

View all Pat McFadden (Lab - Wolverhampton South East) contributions to the debate on: European Union: Future Relationship
Speech in Commons Chamber - Tue 29 Oct 2019
Early Parliamentary General Election Bill

"I begin with the revolutionary thought that if something was a bad idea yesterday, it might just be a bad idea today. I do not believe that the Prime Minister has been pushing for an election because it is impossible to get his deal through. After all, the proposal received …..."
Pat McFadden - View Speech

View all Pat McFadden (Lab - Wolverhampton South East) contributions to the debate on: Early Parliamentary General Election Bill
Speech in Commons Chamber - Tue 29 Oct 2019
Early Parliamentary General Election Bill

"Those are not the only ways. There are three ways to avoid no deal: we can revoke, as the hon. Lady says, but that is not something we should do without the people having a say; we can agree a deal; or we can go back to the people. There …..."
Pat McFadden - View Speech

View all Pat McFadden (Lab - Wolverhampton South East) contributions to the debate on: Early Parliamentary General Election Bill
Speech in Commons Chamber - Tue 29 Oct 2019
Early Parliamentary General Election Bill

"I would like to proceed.

Secondly, what is the right way to reach a resolution on an issue that has been so difficult for us and for the country? Surely the right way to reach a resolution on Brexit, and on the proposals before us, is to properly and fully …..."
Pat McFadden - View Speech

View all Pat McFadden (Lab - Wolverhampton South East) contributions to the debate on: Early Parliamentary General Election Bill
Speech in Commons Chamber - Tue 29 Oct 2019
Early Parliamentary General Election Bill

"I do. There are many other points about this deal that we should properly explore, not least because for the first time, the proposal before us is to have two Brexits, not one—one Brexit for one part of the country and another Brexit for the rest of the United Kingdom.

…..."
Pat McFadden - View Speech

View all Pat McFadden (Lab - Wolverhampton South East) contributions to the debate on: Early Parliamentary General Election Bill