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Audit Commission’s National Fraud Initiative has future, fighting fraud under Cabinet Office

16 July 2013

“We are delighted to welcome the official announcement that the National Fraud Initiative (NFI) will be retained and transferred to the Cabinet Office when the Audit Commission closes in 2015. The Commission is proud of the contribution that the NFI, and the close-knit team running it, make towards saving money otherwise lost to fraud, error or overpayment – amounting to over £1billion since it was established in 1996. We are greatly reassured the team will continue working to help organisations identify lost revenue that, in this time of savings and efficiencies, can make a significant difference to the delivery of public services or in the support of companies in the private sector.” said: Jeremy Newman, Chairman of the Audit Commission.

The success of the NFI is based on the dedication of the participating bodies, the skills of the small team that delivers it and the statutory powers that make effective data matching possible. This announcement ensures that the powers and the team will remain in place and the Audit Commission looks forward to helping ensure a seamless transition of the NFI to the Cabinet Office. The commitment made by the Cabinet Office to the future of the NFI is key to continuing and building on its success to date and ensuring it can continue to protect the public purse

The Audit Commission’s National Fraud Initiative matches data from 1,300 public sector and 77 private sector organisations, including audit bodies in Scotland, Wales and Northern Ireland, government departments and other agencies. It flags up inconsistencies in the information that indicate that a fraud, an error or an overpayment may have taken place; signalling the need for review and potential investigation.

 - ENDS –

[Response to the press release: Cabinet Office’s fight on fraud boosted by National Fraud Initiative move issued by Minister for Cabinet Office, Francis Maude, confirming the proposed transfer of the Audit Commission's National Fraud Initiative into the Cabinet Office’s Efficiency and Reform Group and his Written Ministerial Statement 2 (Cabinet Office) Transfer National Fraud Initiative]

Notes to editors

  1. The outcomes since 1996 include: the prevention and detection of 15,000 cases of pension overpayments worth £450 million, almost 100,000 cases of council tax single person discounts incorrectly awarded worth £160 million and over £250 million of housing benefit overpayments.
  2. The outcomes from the most recent exercise in England include:
    • the prevention and detection of £103 million pension overpayments;
    • £79 million council tax single person discounts incorrectly awarded;
    • £42 million housing benefit overpayments;
    • 164 employees identified as having no right to work in the UK;
    • 321 false applications removed from housing waiting lists;
    • 1,031 prosecutions, 921 of them for housing benefit fraud; and 
    • 32,633 blue badges and 52,635 concessionary travel passes cancelled.
  3. The £1 billion fraud detection figure includes overpayments and recoveries both already delivered and estimated outcomes. Estimates are included where it is reasonable to assume that fraud, overpayments and error would have continued undetected without NFI data matching.
  4. The Audit Commission’s role is to protect the public purse. We do this by appointing auditors to a range of local public bodies in England. We set the standards we expect auditors to meet and oversee their work. Our aim is to secure high-quality audits at the best price possible. We use information from auditors and published data to provide authoritative, evidence-based analysis. This helps local public services to learn from one another and manage the financial challenges they face. We also compare data across the public sector to identify where services could be open to abuse and help organisations fight fraud.

For further information please contact:

Nick Rigg, Communications manager
Direct line:   0303 444 8284
Mobile: 07970 906 112
Press office: 0303 444 8282
Email: n-rigg@audit-commission.gsi.gov.uk