Crack Covid fraud squad set up to seek out criminals stealing millions from the taxpayer

But after Mr Sunak’s resignation and installed in his new job overseeing the end of Government waste, Mr Rees-Mogg with the backing of Boris Johnson has seen off objections from Treasury officials and got his way on setting up the new team.

A source close to Mr Rees-Mogg said: “This is a victory against the civil service blob. The PSFA will cause a few departments some embarrassment by uncovering fraud but that is why it was needed.”

The new team at the heart of government has been told to hunt down fraud committed against the public purse, with a £180 million target set for the first 12 months.

The Domestic And Economic Efficiency And Value For Money Committee has challenged the new organisation to work with departments to agree longer-term targets by December.

The PSFA will be made up of counter fraud and data experts, using best-in-class tools and advanced analytics to help departments and public bodies protect public money. It will be supported by a cross sector Advisory Panel that will provide expert advice and help shape the strategic approach to public sector fraud prevention and reduction.

The Advisory Panel will have a chair, who will be announced in September. 

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