For immediate release
The number of compliance staff in the public sector halved during the pandemic, contributing to a potential five-fold increase in fraud according to analysis by the TaxPayers’ Alliance (TPA) of the whole of government accounts. The campaign group accuses ministers of failing to grasp the severity of the fraud crisis.
According to the accounts, total fraud and error loss across the public sector was estimated to be between £33.2 billion and £58.8 billion in 2020/21 (these figures include the tax and welfare systems but not Covid-19 specific schemes). This compares to £10.8 billion of fraud and error loss detected in 2020.
Despite this, the number of compliance staff working in government halved due to reassignment from 2019-20 to 2020-21, even though spending on public sector employment increased as a whole. Public expenditure increased by £144.3 billion while total costs for staff have gone from £235.3 to £253.5 billion. Purchase of goods, services and other expenditure has gone from £223.6 billion to £238.7 billion.
The accounts also revealed the enormous cost of covid to taxpayers with grants and subsidies increasing from £62.2 to £197.2 billion.
2020/21 also saw a continuation of six-figure sums being paid in redundancy payments. A total of 803 exit payments were made over £100,000 in 2020/21, although this is down from the previous year.
Key findings:
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Total fraud and error loss across the public sector was estimated to be between £33.2 billion and £58.8 billion in 2020/21 (these figures include the tax and welfare systems but not Covid-19 specific schemes).
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This compares to £10.8 billion of fraud and error loss detected in 2020.
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The number of compliance staff working in government halved from 2019-20 to 2020-21, even though spending on public sector employment increased as a whole.
- Public expenditure increased by £144.3 billion while total costs for staff have gone from £235.3 to £253.5 billion.
John O’Connell, chief executive of the TaxPayers' Alliance, said:
“The government’s accounts are a catalogue of misery for taxpayers.
“While ministers have failed to grasp the severity of the fraud crisis, fraudsters are laughing all the way to the bank.
“Cracking down on fraud would be an ideal first step in bringing the cost of government crisis under control.”
TPA spokespeople are available for live and pre-recorded broadcast interviews via 07795 084 113 (no texts)
Media contact:
Conor Holohan
Media Campaign Manager, TaxPayers' Alliance
[email protected]
24-hour media hotline: 07795 084 113 (no texts)
Notes to editors:
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Founded in 2004 by Matthew Elliott and Andrew Allum, the TaxPayers' Alliance (TPA) campaigns to reform taxes and public services, cut waste and speak up for British taxpayers. Find out more at www.taxpayersalliance.com.
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TaxPayers' Alliance's advisory council.
- Data obtained from the whole of government accounts 2020-21.