Public Services > Devolved

CIFPA awarded pan-London fraud hub contract

Neil Merrett Published 23 May 2017

Agreement to operate fraud solution developed by the London Borough of Ealing on a payment-by-results basis is valued at between £20m and £53.6m; solution will use advanced analytics to detect and prevent fraud


The London Borough of Ealing has chosen the Chartered Institute of Public Finance and Accountancy (CIPFA) to support a London-wide solution for detecting and protecting local authorities against fraud under a nine year contract.

With an estimated value of between £20m and £53.6m, the agreement will function on a “payment-by-results commercial basis” to support a pan-London data analytics and investigation hub that will initially be made available to the 32 local authorities in the capital. 

The City of London Corporation and the G15 group of housing associations will also be able to make use of the hub, with local authorities and housing associations based outside the capital able to join the contract at a later date, according to the award notice.

Under the terms of the contract, authorities can sign up to services offered via the hub at any point during the nine year contract.

According to the contract award, data will be entered into the hub by authorities or third parties using an automated process that will then provide a number of functions.

“Enquiries from participating authority fraud investigators and data regarding applications for services or benefits from participating authorities will also be entered into the hub,” said the notice. “Using advanced analytics, the hub will produce information to detect and prevent fraud.” 

These investigative functions are expected to be supported by identifying cases or producing risk profiles for customers.

An additional part of the contract will involve using the hub to process enquiries from fraud investigators or through screen applications, providing investigations and a recoveries service to retrace incorrectly paid benefits.

According to the notice, five tenders were received by the authority with CIPFA selected as the single supplier to handle the contract.  However, the authority estimates that around 66% of the total proportion of work under the contract is likely to be subcontracted.

A prior information notice for the opportunity was first issued by Ealing in September 2015 with the aim of finding a supplier to manage operation of the pan-London counter fraud hub.  The opportunity was initially valued between £5m and £20m.

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