Data, trust and accountability: Tackling fraud in the UK public sector

SAS

The Public Authorities (Fraud, Error and Recovery) Act 2025 is now law, giving the Department for Work and Pensions new powers, new data flows and new expectations. The challenge for every team has shifted from securing new powers to using them well.

New research from SAS reveals the scale of the challenge. UK public sector leaders estimate that 19% of their budgets are lost to fraud, waste and error, which is above the global average, and 96% say it has damaged public trust in their organisation. Benefit fraud and error cost £9.5bn in overpayments in 2024-25, and the act is expected to help recover £1.5bn of that by 2029-30.

However, the research also offers solid grounds for confidence in what can be achieved when data and AI are used well: organisations already using data and AI to tackle fraud are seeing productivity gains. Still, only 40% of UK public bodies currently use AI for this purpose, compared with more than half globally, and 98% expect to do so within two years.

This report gives you the evidence to close that gap, including:

The fraud types leaders expect to grow fastest over the next five years
Five practical principles, from investing in skills to keeping AI trustworthy
A step-by-step AI lifecycle for moving from pilot to services at scale
What separates organisations that detect more fraud from those that simply detect it faster

Based on a survey of senior public sector decision-makers responsible for protecting public money, this report is a clear-eyed account of where the UK stands and what it will take to stay ahead.

Complete the form to download the full report.

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