Fraud and errors worth almost £22 million have been identified in Scotland's public services, according to a watchdog investigation.
An investigation by Audit Scotland's National Fraud Initiative (NFI) uncovered overpaid pensions, council tax discounts that should not have been claimed, and £1.1 million in duplicate payments for goods and services.
Almost £6 million of the total is expected to be recovered, while almost £9 million is considered "forward savings" for public bodies and income resulting from the investigation. The remaining sum, almost £7 million, is the estimated value of fraud and error that does not directly impact public bodies' finances.
Investigation details
The NFI checks the books of public sector bodies every two years. The probe cross-checks information from public bodies – such as payroll records, electoral registers and housing benefits claims – to prevent things like benefits fraud, tenancy fraud and fraudulent payments of wages and pensions.
The investigation also found a small number of public sector employees who had taken on second jobs when they were already working full-time or on sick leave. They could be prosecuted, sacked or face disciplinary action.
Savings and recovery
The overall £21.7 million in fraud and error was a slight drop from last year's figure of £22.1 million. The highest level of saving was found in pensions – the majority of which would be for the future – followed by the single person discount on council tax.
Over £200 million of potential savings have been identified by the NFI in Scotland since 2006/07.
Responses
John Cornett, the executive director of audit services at Audit Scotland, said: "The NFI remains vitally important at a time of ongoing financial pressures across the public sector. Public bodies are getting better at delivering the NFI, but they need to ensure they have staff available to effectively follow up on matches."
Phil Cotter, chief executive of SmartSearch, said: "The Audit Scotland findings are a reminder that while the technology to identify fraud exists, organisations still need the ability to act on what that technology reveals. That's true in the public sector and equally true across regulated firms in legal, financial services and accountancy. As fraud becomes more sophisticated, particularly with the emergence of AI-enabled techniques, the focus has to be on faster response times, more consistent follow-up and continuous monitoring rather than periodic reviews. The biggest gains come not just from detecting fraud, but from preventing it in the first place."
