PracticeAuditNAO says £3bn is lost to benefit fraud and error

NAO says £3bn is lost to benefit fraud and error

NAO chief Sir John Bourn has qualified his opinion of the accounts for government spending on benefits for the 15th year running.

Link: NAO under Treasury pressure to curb costs

The Comptroller and Auditor General, in a report to Parliament, blamed ‘substantial levels of estimated losses from fraud and error in benefit expenditure’ estimated at £3 billion a year.

He also found problems with limits to the evidence made available to the NAO during an audit of Incapacity Benefit spending, and ‘material uncertainties over the completeness, existence and accuracy of amounts recorded in the accounts for benefit overpayment debtors’.

Bourn reported the amount lost from payments from fraud and error in 2003-04 was about the same as in 2001-02 and 2002-03 at around 2.8% of the department’s £109 billion gross expenditure.

He has qualified the department’s accounts and those of the former Department of Social Security for 15 years running because of the level of fraud and error, with the worst performance on Income Support and Jobseeker’s Allowance, although performance had improved by more than the department’s target.

He said the challenge of reducing the scale of fraud and error across the benefit system ‘still remains very large indeed’.

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

3d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

1w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter