Public Authorities (Fraud, Error and Recovery) Act 2025

Part 1 — Functions exercisable on behalf of public authorities

Chapter 1 — Key concepts

Core functions of the Minister for the Cabinet Office

1

• (1) The Minister for the Cabinet Office (“the Minister”) has the following functions (“the core functions”)—

• (a) investigating suspected fraud against public authorities,

• (b) recovering amounts mentioned in subsection (2),

• (c) taking enforcement action in connection with fraud against public authorities, and

• (d) providing support to public authorities in relation to preventing and tackling fraud against them.

• (2) The amounts are—

• (a) payments made as a result of fraud or error that—

• (i) the Minister has identified or confirmed during the course of an investigation in respect of suspected fraud against a public authority, and

• (ii) the public authority is entitled to recover,

• (b) any other amount that a public authority is entitled to recover in respect of fraud, and

• (c) any interest that a public authority is entitled to recover in respect of an amount within paragraph (a) or (b).

• (3) In this Part, amounts within subsection (2) are referred to as “recoverable amounts”.

Interaction with other public authorities etc

2

• (1) The Minister may—

• (a) investigate or take enforcement action in respect of suspected fraud against another public authority, or

• (b) recover money on behalf of another public authority,

only at the request of that public authority or if the Minister considers that it is necessary in the public interest to do so.

• (2) The Minister may not act as mentioned in subsection (1) on behalf of, or in relation to—

• (a) the Secretary of State with responsibility for social security, or

• (b) His Majesty’s Revenue and Customs.

• (3) The Minister may charge another public authority a fee in relation to the exercise of functions under this Part on behalf of, or in relation to, the public authority.

• (4) References in this Part to any public authority include the Minister in any case relating to—

• (a) fraud or suspected fraud against the Minister, or

• (b) the recovery of money for the Minister.

• (5) Nothing in this Part affects—

• (a) whether a public authority is entitled to recover an amount, or

• (b) functions that a public authority has in respect of fraud and the recovery of money,

otherwise than by virtue of this Part.

Chapter 2 — Investigatory powers

Information

Information notices

3

• (1) The Minister may require a person (“P”) to give specified information to the Minister where the Minister considers that—

• (a) it is necessary and proportionate to do so for the purpose of exercising the Minister’s functions under section 1(1)(a) to (c), and

• (b) the information relates to a person (whether or not P) whom the Minister has reasonable grounds to suspect has committed fraud against a public authority.

• (2) The power conferred by subsection (1) is to be exercised by giving P a notice (an “information notice”).

• (3) An information notice must identify (by name or description) the person suspected of having committed fraud as mentioned in subsection (1)(b).

• (4) An information notice must set out—

• (a) how, where and the period within which the information must be given to the Minister in order for the recipient of the notice to avoid being liable to a penalty under section 54;

• (b) information about the consequences of not complying with the notice.

• (5) The period mentioned in subsection (4)(a) must not be less than 10 working days beginning with the day after the day on which the information notice is given.

• (6) The power under this section to require P to give information to the Minister includes the power to—

• (a) take copies of or extracts from information;

• (b) require P to provide information in a specified form;

• (c) require P to retain information that P would not otherwise retain;

• (d) if any specified information is not given to the Minister, 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 the Minister.

• (7) An information notice under this section may not require the giving of—

• (a) journalistic material, or

• (b) excluded material,

within the meaning of the Police and Criminal Evidence Act 1984 (see sections 11 to 13 of that Act; see section 7(2)(b) of this Act for provision about production orders).

• (8) In this section, “specified” means—

• (a) specified, or described, in an information notice, or

• (b) falling within a category that is specified, or described, in an information notice.

Reviews

4

• (1) A person to whom an information notice is given under section 3 may apply to the Minister for a review of the decision to give the notice.

• (2) An application under subsection (1) must be made within the period of 7 days beginning with the day after the day on which the notice is given.

• (3) Where an application is made under subsection (1), the Minister must review the decision to give the notice.

• (4) On the review, the Minister may—

• (a) revoke the notice,

• (b) uphold the notice, or

• (c) vary the notice.

• (5) After a review has been carried out, the Minister must—

• (a) notify the person who applied for the review of the outcome of the review, and

• (b) if the outcome was to vary the notice, give the person the varied notice.

• (6) Where an information notice is upheld or varied on a review, the period mentioned in section 3(4)(a) is to be treated as beginning on the day after the day on which the outcome of the review is notified to the person to whom the information notice was given.

Information sharing

5

• (1) A public authority may disclose information to the Minister for the purpose of facilitating the Minister’s exercise of the core functions.

• (2) The Minister may use information disclosed under subsection (1) only for the purpose of exercising the core functions.

• (3) The Minister may disclose information to another person for the purpose of exercising the core functions.

• (4) Where the Minister discloses information to a person under subsection (3), the person may not—

• (a) use it for any purpose other than the purpose for which it was disclosed, and

• (b) may not disclose it to any other person,

without the consent of the Minister.

Amendment of the Investigatory Powers Act 2016

6

In the Investigatory Powers Act 2016, in Schedule 4 (relevant public authorities and designated senior officers etc), in the table in Part 1, before the entry for the Common Services Agency for the Scottish Health Service insert—

Cabinet Office, so far as relating to the Public Sector Fraud Authority	60A(7)(b)

.

Powers of entry, search and seizure etc

Police and Criminal Evidence Act 1984 etc powers

7

• (1) The provisions of the Police and Criminal Evidence Act 1984 listed in subsection (2) apply in relation to investigations of offences of fraud against a public authority that are conducted by authorised investigators in the exercise of the Minister’s function under section 1(1)(a) as they apply in relation to investigations of offences conducted by police officers, subject to the modifications in Schedule 1.

• (2) The provisions are—

• (a) section 8(1) to (5) (power of justice of the peace to authorise entry and search of premises);

• (b) section 9(1) and Schedule 1 (special provisions as to access);

• (c) section 15 (search warrants: safeguards);

• (d) section 16 (execution of warrants);

• (e) section 19 (general power of seizure etc);

• (f) section 20 (extension of powers of seizure to computerised information);

• (g) section 21 (access and copying);

• (h) section 22 (retention);

• (i) sections 10 to 14, 23 and 118 (interpretation provisions), so far as necessary for the application of the provisions mentioned in paragraphs (a) to (h).

• (3) An authorised investigator is an individual who is authorised by the Minister to exercise the powers conferred by this section.

• (4) An individual may not be an authorised investigator unless the individual—

• (a) is employed in the civil service of the state in the Minister’s department, and

• (b) is a higher executive officer or has a grade that is equivalent to, or higher than, that of a higher executive officer.

Disposal of property

8

• (1) A magistrates’ court may, on an application by the Minister or a person with an interest in relevant property—

• (a) order the delivery of the relevant property to the person appearing to the court to be its owner, or

• (b) if its owner cannot be ascertained, make any other order about the relevant property.

• (2) An order under subsection (1)(a) may include provision for the Minister to make any changes to the relevant property that the court considers necessary for the purpose of avoiding or reducing any risk of the relevant property being used in the commission of an offence.

• (3) An order under subsection (1)(b) may not provide for the destruction or disposal of the relevant property before the end of the period of 6 months beginning with the day on which the order is made.

• (4) An order under subsection (1)(b) (“the first order”) does not prevent further applications being made for an order under subsection (1) in respect of the relevant property to which the first order applies.

• (5) Where an order is made following a further application—

• (a) the order may not provide for the destruction or disposal of the relevant property before the end of the period of 6 months beginning with the day on which the first order was made, but

• (b) the order may otherwise contain such provision as to the timing of the destruction or disposal of the relevant property as the court thinks fit.

• (6) In this section, “relevant property” means tangible property which has come into the possession of the Minister in the course of, or in connection with, the exercise of a function under this Part.

Incidents etc

9

• (1) The Police Reform Act 2002 (complaints and misconduct) is amended as follows.

• (2) In section 10 (general functions of the Director General)—

• (a) in subsection (1), at the end of paragraph (gb) insert

, and (gc) to carry out such corresponding functions in relation to public sector fraud investigators acting in the exercise of functions conferred on them by section 7 of the Public Authorities (Fraud, Error and Recovery) Act 2025 (Police and Criminal Evidence Act 1984 powers for public sector fraud investigators).

,

• (b) in subsection (3), after paragraph (be) insert—

(bf) any regulations under section 26G of this Act (public sector fraud investigators);

, and

• (c) after subsection (7) insert—

(7A) In this section, “public sector fraud investigators” means authorised investigators within the meaning given by section 7 of the Public Authorities (Fraud, Error and Recovery) Act 2025.

• (3) After section 26F insert—