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

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Part 2Social security etc

Chapter 1Powers to require information

76Information notices

(1)

The Social Security Administration Act 1992 is amended as follows.

(2)

After section 109B insert—

“109BZAPower to require information about suspected fraud etc

(1)

An authorised officer may give a person (“P”) a written notice (an “information notice”) requiring P to give an authorised officer specified information where the officer—

(a)

has reasonable grounds to suspect that a person has committed, is committing or intends to commit a DWP offence, and

(b)

considers that it is necessary and proportionate to require the specified information for a purpose mentioned in section 109A(2)(c) or (d) (investigating compliance with the relevant social security legislation etc).

(2)

Information may be specified in an information notice only if it relates to a person who is identified (by name or description) in the information notice as—

(a)

the person suspected as mentioned in subsection (1)(a), or

(b)

a member of that person’s family (within the meaning of Part 7 of the Contributions and Benefits Act).

(3)

An authorised officer may require P to give specified information only if the officer has reasonable grounds to suspect that P has or is able to access the information.

(4)

An information notice must set out—

(a)

the identity (by name or description) of the person to whom the information requested relates;

(b)

how, where and the period within which the information must be given;

(c)

information about the consequences of not complying with the notice.

(5)

The power under this section to require P to give information includes power to—

(a)

take copies of or extracts from information;

(b)

require P to provide information in a specified form;

(c)

if any specified information is not given to an authorised officer, require P to state, to the best of P’s knowledge and belief, both where that information is and why it has not been given to an authorised officer.

(6)

Subsection (2E) of section 109B (communications data) applies to an information notice under this section as it applies to a notice under that section.

(7)

In this section—

“information” means information in the form of a document or in any other form;

“specified” means—

(a)

specified, or described, in the information notice, or

(b)

falling within a category that is specified or described in the information notice.

(8)

Nothing in this section limits the powers conferred on the Secretary of State by Schedule 3B.”

(3)

In section 109A (authorisations for investigators)—

(a)

in subsection (1), for “109B and 109C below” substitute “109B to 109C”;

(b)

in subsection (2)(d), at the end insert “or other DWP offences”;

(c)

in subsection (8), for “109B and 109C below” substitute “109B to 109C”.

(4)

In section 109B (power to require information)—

(a)

in the heading, at the end insert “about entitlement etc”;

(b)

in subsection (1)(a) omit “or (2A)”;

(c)

in subsection (1)(b), for “any one or more of the purposes mentioned in section 109A(2) above” substitute “a purpose mentioned in section 109A(2)(a) or (b)”;

(d)

omit the following provisions—

(i)

subsection (2A);

(ii)

subsection (2B);

(iii)

subsection (2C);

(iv)

subsection (2D);

(v)

subsection (5);

(vi)

subsection (6);

(vii)

subsection (7A);

(e)

in subsection (7) omit the definitions of—

(i)

“bank”;

(ii)

“credit”;

(iii)

“insurer”;

(iv)

“residential premises”.

(5)

In section 109BA (power of the Secretary of State to require electronic access to information)—

(a)

in subsection (1)—

(i)

in paragraph (a) omit “falling within section 109B(2A)”;

(ii)

in paragraph (b), for “109A(2)” substitute “109A(2)(c) or (d)”;

(b)

in subsection (2)(b), for “109B above” substitute “109BZA”;

(c)

in subsection (4), for “109B” substitute “109BZA”.

(6)

In section 109C (powers of entry), in subsection (6), for “Subsections (2E) and (5) of section 109B apply for the purposes of this section as they apply” substitute “Subsection (2E) of section 109B applies for the purposes of this section as it applies”.

(7)

In section 190 (Parliamentary control of orders and regulations), in subsection (1) omit paragraph (aza).

(1)

The Social Security Fraud Act 2001 is amended as follows.

(2)

In section 3 (code of practice about use of information powers), in subsection (1)—

(a)

in the words before paragraph (a), after the second “of” insert “the powers that are exercisable by an authorised officer under section 109BZA of the Administration Act.”, and

(b)

omit paragraphs (a) and (b).

(3)

Section 4 (arrangements for payments in respect of information) is amended as follows.

(4)

For subsections (1) and (2) substitute—

“(1A)

The Secretary of State must ensure that such arrangements (if any) are in force as the Secretary of State thinks appropriate for requiring or authorising, in such cases as the Secretary of State thinks fit, the making of such payments as the Secretary of State considers appropriate in respect of compliance with relevant obligations by any person.

(1B)

In subsection (1A), “relevant obligation” means an obligation to provide information, or access to information, under section 109BZA or 109BA of the Administration Act.”

(5)

Omit subsection (4).

78Eligibility verification

(1)

The Social Security Administration Act 1992 is amended in accordance with subsections (2) to (4).

(2)

In Part 7 (information), before section 121E (and the italic heading before it) insert—

“Eligibility verification

121DBEligibility verification

Schedule 3B makes provision about a power for the Secretary of State to obtain information for the purposes of assisting in identifying incorrect payments of certain benefits.”

(3)

In section 190(1) (Parliamentary control of orders and regulations), after paragraph (ac) (inserted by section 95(4) of this Act) insert—

“(ad)

regulations under paragraph 2(1)(b) or 19(2) of Schedule 3B;”.

(4)

After Schedule 3A insert, as Schedule 3B, the Schedule in Part 1 of Schedule 3 to this Act.

(5)

Part 2 of Schedule 3 to this Act makes amendments to the Proceeds of Crime Act 2002.

79Eligibility verification: independent review

After section 121DB of the Social Security Administration Act 1992 (inserted by section 78 of this Act) insert—

“121DCIndependent review

(1)

The Secretary of State must appoint an independent person to carry out reviews of the exercise of the Secretary of State’s functions under Schedule 3B (eligibility verification).

(2)

After each review, the independent person must as soon as practicable—

(a)

prepare a report, and

(b)

submit the report to the Secretary of State.

(3)

On receiving a report, the Secretary of State must—

(a)

publish it, and

(b)

lay a copy before Parliament.

(4)

The first review must relate to the period of 12 months beginning with the day on which section 78 of the Public Authorities (Fraud, Error and Recovery) Act 2025 comes fully into force.

(5)

Subsequent reviews must relate to subsequent periods of 12 months.

(6)

Each review must consider the extent to which—

(a)

the Secretary of State’s exercise of powers under Schedule 3B has complied with the requirements of the Schedule and any code of practice in force under Part 5 of the Schedule during the period,

(b)

the actions taken by persons given an eligibility verification notice have complied with the requirements of Schedule 3B, and

(c)

the exercise of the Secretary of State’s powers under Schedule 3B has been effective in assisting in identifying incorrect payments of relevant benefits during the period covered by the review.

(7)

Regulations may confer functions on a person for the purposes of securing compliance with subsections (1) to (6).

121DDIndependent review: further provision

(1)

The Secretary of State must disclose information to the independent person appointed under section 121DC(1), or to a person acting on behalf of the independent person, where the information is reasonably required for the purposes of reviews being carried out under section 121DC.

(2)

Subsection (1) does not authorise the disclosure of information that is prohibited by any of Parts 1 to 7 or Chapter 1 of Part 9 of the Investigatory Powers Act 2016.

(3)

A disclosure of information under subsection (1) (as read subject to subsection (2)) does not breach—

(a)

any obligation of confidence owed by the person making the disclosure, or

(b)

any other restriction on the disclosure of information (however imposed).”

Changes to legislation:

Changes to Legislation

Part 2Social security etc

Chapter 1Powers to require information

76Information notices

(1)

(2)

“109BZAPower to require information about suspected fraud etc

(1)

(a)

(b)

(2)

(a)

(b)

(3)

(4)

(a)

(b)

(c)

(5)

(a)

(b)

(c)

(6)

(7)

(a)

(b)

(8)

(3)

(a)

(b)

(c)

(4)

(a)

(b)

(c)

(d)

(i)

(ii)

(iii)

(iv)

(v)

(vi)

(vii)

(e)

(i)

(ii)

(iii)

(iv)

(5)

(a)

(i)

(ii)

(b)

(c)

(6)

(7)

77Consequential amendments to the Social Security Fraud Act 2001

(1)

(2)

(a)

(b)

(3)

(4)

“(1A)

(1B)

(5)

78Eligibility verification

(1)

(2)

“Eligibility verification

121DBEligibility verification

(3)

“(ad)

(4)

(5)

79Eligibility verification: independent review

“121DCIndependent review

(1)

(2)