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

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Introduction

Part 1
Functions exercisable on behalf of public authorities

Chapter 1 Key concepts

1 Core functions of the Minister for the Cabinet Office

2 Interaction with other public authorities etc

Chapter 2 Investigatory powers

Information

3 Information notices

4 Reviews

5 Information sharing

6 Amendment of the Investigatory Powers Act 2016

Powers of entry, search and seizure etc

7 Police and Criminal Evidence Act 1984 etc powers

8 Disposal of property

9 Incidents etc

Chapter 3 Rights to recover

Recovery of recoverable amounts

10 Acting for another public authority

11 Recovery notices

12 Restriction on availability of powers: claimed amounts

Recovery of other amounts

13 Penalties etc

14 Restriction on availability of powers: penalties

Chapter 4 Methods of recovery

Introduction

15 Payable amounts

Recovery as if payable under a court order

16 Recovery orders

Recovery from bank accounts etc

17 Direct deduction orders

18 Accounts which may be subject to a direct deduction order

19 Requirement for banks to provide information

20 Joint accounts

21 Further requirements before making a direct deduction order

22 Amount of deductions

23 Content and effect of direct deduction orders

24 Bank’s administrative costs

25 Insufficient funds

26 Restrictions on accounts: banks

27 Restrictions on accounts: account holders

28 Applications to vary

29 Variation

30 Revocation

31 Further information notices

32 Suspension of direct deduction orders

33 Cessation on death of liable person

34 Reviews

35 Appeals

36 Meaning of “bank” etc

37 Deputies

38 Regulations

Deduction from earnings

39 Deduction from earnings orders

40 Content and effect of deduction from earnings orders

41 Requirements before making a deduction from earnings order

42 Amount of deductions

43 The employer’s administrative costs

44 Suspension of deduction from earnings orders

45 Duty to notify the Minister of change of circumstances

46 Applications to vary

47 Variation

48 Revocation

49 Reviews

50 Appeals

Chapter 5 Civil penalties

51 Penalty relating to fraud

52 Application to members etc of bodies

53 Amount of penalty relating to fraud

54 Penalty for failing to comply with requirements

55 Application to members etc of bodies

56 Amount of penalty for failing to comply with requirements

57 Procedural rights

58 Penalty decision notices

59 Reviews and decisions

60 Penalty notices

61 Appeals

62 Interest

63 Code of practice

64 Penalties and criminal proceedings or convictions

Chapter 6 General

65 Independent review

66 Independent review: further provision

67 Authorised officers

68 Guidance on exercise of investigatory functions

69 Reports on exercise of functions

70 Record of exercise of functions

71 Disclosure of information etc: interaction with external constraints

72 Crown etc application

73 Public Sector Fraud Authority and transfer of functions

74 Interpretation

75 Regulations

Part 2
Social security etc

Chapter 1 Powers to require information

76 Information notices

77 Consequential amendments to the Social Security Fraud Act 2001

78 Eligibility verification

79 Eligibility verification: independent review

Chapter 2 Powers of entry, search and seizure etc

80 Entry, search and seizure in England and Wales

81 Entry, search and seizure in Scotland

82 Entry, search and seizure: Crown application

83 Offence of delay, obstruction etc

84 Disposal of property

85 Amendments to the Criminal Justice and Police Act 2001

86 Incidents etc in England and Wales

87 Incidents etc in Scotland

Chapter 3 Further provision relevant to investigatory powers

88 Devolved benefits

89 DWP offence

90 Disclosure of information etc: interaction with external constraints

91 Giving notices etc

92 Independent review

Chapter 4 Overpayments: recovery and enforcement

93 Enforcement of non-benefit payments

94 Recovery and enforcement mechanisms

95 Recovery from bank accounts etc

96 Disqualification from driving

97 Code of practice

98 Rights of audience

99 Recovery of costs

100 Recovery: further provision

Chapter 5 Offences, penalties etc

101 Offences: non-benefit payments

102 Penalty as alternative to prosecution: extension to non-benefit payments

103 Amendments to the Social Security Fraud Act 2001: loss of benefits following penalty

104 Powers of Scottish Ministers

Part 3
General

105 Application and limitation

106 Power to make consequential provision

107 Financial provision

108 Extent

109 Commencement

110 Short title

SCHEDULES

Schedule 1 Fraud against public authorities: Police and Criminal Evidence Act 1984 powers

Schedule 2 Public Sector Fraud Authority and transfer of functions

Schedule 3 Eligibility verification etc

Schedule 4 Social security fraud: search and seizure powers etc

Schedule 5 Recovery from bank accounts etc

Schedule 6 Disqualification from driving

Changes to legislation:

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Changes to Legislation

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Part 2Social security etc

Chapter 3Further provision relevant to investigatory powers

88Devolved benefits

In the Social Security Administration Act 1992, after section 121D, insert—

“121DZADevolved Benefits

(1)

Subject to subsection (3), powers of the Secretary of State under this Part (including powers of an individual who has the Secretary of State’s authorisation for the purposes of this Part as mentioned in section 109A) are not exercisable in relation to a devolved benefit.

(2)

A benefit is a devolved benefit if functions under this Part are exercisable in relation to the benefit by the Scottish Ministers by virtue of section 53 of the Scotland Act 1998, read with section 32 of the Scotland Act 2016.

(3)

The powers referred to in subsection (1) are exercisable in relation to a devolved benefit where arrangements made under section 93(1) of the Scotland Act 1998 (agency arrangements) have the effect that the Secretary of State is to exercise any functions of the Scottish Ministers under this Part on behalf of the Scottish Ministers in relation to the benefit.”

Annotations:
Commencement Information

I1S. 88 not in force at Royal Assent, see s. 109(1)

89DWP offence

In the Social Security Administration Act 1992, in section 121DA (interpretation of Part relating to enforcement), in subsection (5), at the end insert—

““DWP offence” means—

(a)

a benefit offence,

(b)

any other offence relating to a benefit or grant in relation to which the Secretary of State with responsibility for social security exercises functions (whether or not the benefit or grant concerns social security),

(c)

an offence relating to the allocation or use of a national insurance number, and

(d)

any attempt or conspiracy to commit an offence within paragraph (b) or (c).”

Annotations:
Commencement Information

I2S. 89 not in force at Royal Assent, see s. 109(1)

90Disclosure of information etc: interaction with external constraints

In Part 6 of the Social Security Administration Act 1992 (enforcement), after section 109G (inserted by section 84 of this Act) insert—

“109HDisclosure of information etc: interaction with external constraints

(1)

This section applies in relation to any provision for the disclosure or obtaining of information made by or under this Part so far as the provision applies in connection with the exercise of powers by or on behalf of the Secretary of State.

(2)

The provision does not require or authorise any 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)

The disclosure of information in accordance with the provision (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).

(4)

The provision does not require or authorise the disclosure or obtaining of information in respect of which a claim to legal professional privilege could be maintained in legal proceedings without the agreement of the person entitled to maintain that claim.

(5)

In the application of subsection (4) in Scotland, the reference to legal professional privilege is to be read as a reference to confidentiality of communications.

(6)

A person may not be required under the provision to give information which tends to incriminate the person or the person’s spouse or civil partner.

(7)

A person who provides services free of charge in relation to social security, housing (including services that involve the provision of accommodation) or debt, may not be required under the provision to give personal data about persons receiving such a service free of charge.

(8)

The provision does not require or authorise the disclosure of—

(a)

journalistic material, or

(b)

excluded material,

within the meanings of the Police and Criminal Evidence Act 1984 (see sections 11 to 13 of that Act).

(9)

But subsections (5) to (9) do not apply in relation to—

(a)

the provisions of the Police and Criminal Evidence Act 1984 as applied by section 109D, and

(b)

Schedule 3ZD.

(10)

In this section “personal data” has the same meaning as in the Data Protection Act 2018 (see section 3(2) of that Act).”

Annotations:
Commencement Information

I3S. 90 not in force at Royal Assent, see s. 109(1)

91Giving notices etc

In the Social Security Administration Act 1992, in section 121DA (interpretation of Part relating to enforcement), after subsection (7) insert—

“(8)

In this Part, references to giving a notice or other document (however expressed) include sending the notice or document by post.”

Annotations:
Commencement Information

I4S. 91 not in force at Royal Assent, see s. 109(1)

92Independent review

In the Social Security Administration Act 1992, after section 109H (inserted by section 90 of this Act) insert—

“109IIndependent review

(1)

The Secretary of State must appoint an independent person to carry out reviews of the exercise of functions under sections 109A to 109H and Schedule 3ZD (“investigative functions”) by or on behalf of the Secretary of State.

(2)

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

(a)

prepare a report on the review, 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)

Each review must consider the extent to which —

(a)

investigative functions have been exercised in compliance with the requirements of provisions mentioned in subsection (1), relevant codes of practice and relevant guidance, and

(b)

the exercise of those functions has been effective in meeting the purposes set out in section 109A(2).

(5)

Each report must contain any recommendations which the independent person considers appropriate in light of the review to which it relates.

(6)

In subsection (4)(a), “relevant codes of practice” and “relevant guidance” mean codes of practice and guidance to which the Secretary of State must have regard in exercising investigative functions.

109JIndependent review: further provision

(1)

The Secretary of State may give the independent person appointed under section 109I(1) directions as to the period to be covered by each review under section 109I.

(2)

The Secretary of State must consult the independent person before giving a direction under subsection (1).

(3)

The Secretary of State may disclose information to the independent person, or to a person acting on behalf of the independent person, for the purposes of reviews being carried out under section 109I.

(4)

Regulations may confer functions on a person for the purposes of securing compliance with section 109I.

(5)

The Secretary of State may comply with the duty in section 109I(1) by appointing different independent persons to carry out reviews in relation to the exercise of investigative functions—

(a)

in England and Wales, and

(b)

in Scotland.”

Annotations:
Commencement Information

I5S. 92 in force at Royal Assent for specified purposes, see s. 109(2)(b)