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The Ministry of Defence is not properly addressing the risk of losing £1.5bn a year through fraud, a committee of MPs say today.

The Commons public accounts committee has published a report calling for a change of culture in the way the MoD tackles fraud.

The Ministry of Defence is at significant risk of fraud and economic crime, with high expenditure, complex procurement, and a global workforce split between the armed forces and civil service. But over the last four years it has recouped on average just 48p for every £1 it spent tackling fraud – well below the government’s expectation of saving £3 for every £1 spent.

So far, the department has not responded to the fraud threats it faces with the degree of focus and leadership that we would expect, and it cannot demonstrate that it is doing enough to protect valuable public funds that should be available to bolster the UK’s defence capability.

There must be a radical change of culture within the MoD if the flow of funds lost to fraudulent activity is to be stemmed. The apparent normalisation of fraud in the procurement process is symptomatic of a wider issue; there is no overarching strategy within the MoD of how to tackle fraud and economic crime.

We are turning that around, and last year we saved £1.34 for every £1 spent on counter-fraud measures, significantly increased on 33p for every £1 spent in 2023/24, and we expect this to be further improved this year.

We have zero tolerance for fraud and corruption and we will continue to strengthen our controls, exploiting the latest technology to prevent and detect fraud and protecting taxpayers’ money as we help keep the UK secure at home and strong abroad.

The 300,000 new placements over the next three years are backed by some of Britain’s biggest employers, Pat McFadden, the work and pensions secretary, said.

These include Manchester and Gatwick airports, and the government has vowed placements will reach young people across the country.