National fraud exercise saves millions

A data matching exercise has detected fraud and error with an estimated value of almost £22 million across Scotland’s public sector.

The National Fraud Initiative (NFI) helps prevent fraud and error by cross-checking public bodies’ data sets such as payroll records, electoral registers, and housing benefit claims. If a match is identified it can then be reviewed and investigated.

Since 2024, the NFI has identified £21.7 million worth of data matching outcomes. That figure includes:

£6 million of overpayments and additional income that can be recovered and collected

around £9 million of estimated forward savings and additional income.

The largest savings and additional income came from council tax, pensions, business rates, and the identification of duplicate payments. The other outcomes, around £7 million, is an estimate of the value of fraud and error identified that does not directly impact on public bodies' finances.

John Cornett, Executive Director of Audit Services, 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.