Legislation – Public Authorities (Fraud, Error and Recovery) Act 2025

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Part 1Functions exercisable on behalf of public authorities

Chapter 3Rights to recover

Recovery of recoverable amounts

10Acting for another public authority

(1)

The Minister may act under this Part on behalf of another public authority in relation to the recovery of a recoverable amount, including by—

(a)

bringing or continuing proceedings in a court or tribunal for an amount (a “claimed amount”) which the Minister reasonably believes to be a recoverable amount, and

(b)

exercising the powers in Chapter 4 to recover a recoverable amount.

(2)

Where the Minister recovers an amount under this Part on behalf of another public authority, the Minister must transfer that amount to the public authority unless the public authority agrees that the Minister may retain some or all of the amount.

11Recovery notices

(1)

Before bringing proceedings in a court or tribunal for a claimed amount on behalf of another public authority, the Minister must give the person from whom the Minister reasonably believes the amount is recoverable (the “liable person”) a notice (a “recovery notice”).

(2)

A recovery notice must—

(a)

state that the Minister intends to bring proceedings for the claimed amount,

(b)

state the amount of the claimed amount,

(c)

provide the Minister’s reasons for believing that amount to be a recoverable amount,

(d)

invite the liable person to discharge the person’s liability in respect of the claimed amount by agreement with the Minister, and set out how this can be done,

(e)

set out the further action that may be taken by the Minister under this Part in respect of the claimed amount, including if the liable person’s liability for the amount is not settled by agreement, and

(f)

state a period during which the Minister will not bring proceedings for the claimed amount in order to give the liable person an opportunity to discharge their liability in respect of the claimed amount by agreement.

(3)

The period mentioned in subsection (2)(f) must not be less than 28 days beginning with the day after the day on which the recovery notice is given.

(4)

The giving of a recovery notice has effect as the bringing of an action for the recovery of a claimed amount for the purposes of any time limit that would apply in relation to that amount.

12Restriction on availability of powers: claimed amounts

The Minister may use the methods of recovery in Chapter 4 to recover a claimed amount from a liable person only so far as—

(a)

the liable person agrees, or

(b)

there has been a final determination by a court or tribunal,

that the amount is a recoverable amount.

Recovery of other amounts

13Penalties etc

(1)

The Minister may exercise the powers in Chapter 4 to recover amounts due in respect of—

(a)

a penalty under Chapter 5, and

(b)

relevant costs.

(2)

For the purposes of this Part, references to—

(a)

an “amount due in respect of a penalty under Chapter 5” include late payment interest due in respect of a penalty (see section 62), and

(b)

“relevant costs” are to—

(i)

costs that are awarded by a court or tribunal on or in relation to a claim for a recoverable amount, and

(ii)

costs that are reasonably incurred by the Minister in exercising the powers in Chapter 4.

14Restriction on availability of powers: penalties

The Minister may exercise the powers in Chapter 4 to recover an amount due in respect of a penalty only when—

(a)

the period for appealing mentioned in section 61(2)(a) has passed without an appeal being brought, or

(b)

any appeal against the penalty has been finally determined (see section 74(4)).