Almost £22m in fraud and errors uncovered in Scotland's public sector

Almost £22m in fraud and errors has been identified across Scotland’s public sector through a data-checking scheme.

The National Fraud Initiative (NFI) works by comparing information held by public bodies, such as payroll records, electoral registers and housing benefit claims.

When the system finds a match between different sets of data, the relevant public body can check whether it is genuine or whether it could point to fraud or an error.

Since 2024, the scheme has identified outcomes worth an estimated £21.7m, which includes:

• £6m in overpayments and additional income that can be recovered
• About £9m in estimated future savings and additional income
• Around £7m in other fraud and error identified that does not directly affect public bodies’ finances

The biggest savings and additional income came from checks involving council tax, pensions, business rates and duplicate payments.

John Cornett, executive director of Audit Services, said the scheme remained important while public bodies faced financial pressures.

“The NFI remains vitally important at a time of ongoing financial pressures across the public sector,” he said.

“Public bodies are getting better at delivering the NFI, but they need to ensure they have staff available to effectively follow up on matches.”

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