Public Authorities (Fraud, Error and Recovery) Act 2025

(109H) (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).

Giving notices etc

91

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.

Independent review

92

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

(109I) (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. (109J) (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.

Chapter 4 — Overpayments: recovery and enforcement

Enforcement of non-benefit payments

93

In the Social Security Administration Act 1992, after section 71ZH insert—

(71ZI) (1) For the purposes of this section and sections 71ZJ and 71ZK, an overpayment of a non-benefit payment occurs where— (a) a person (“P”) misrepresents, or fails to disclose, a material fact, and (b) in consequence of the misrepresentation or failure, P or another person receives a non-benefit payment, or an amount of a non-benefit payment, (whether directly or indirectly) that they would not otherwise have received, and the “overpayment” is that payment or amount. (2) The overpayment is recoverable from P as if it were an amount recoverable under section 71(1) if, in relation to the misrepresentation or failure to disclose, P— (a) is convicted of an offence (under this Act or any other enactment), or (b) agrees to pay a penalty under section 115A. (3) But subsection (2) is subject to section 71ZJ. (4) The right to recover an overpayment under this section does not affect any other right that the Secretary of State may have to recover the overpayment (or any other amount in relation to the non-benefit payment). (5) In this section and sections 71ZJ and 71ZK, “non-benefit payment” has the meaning given by section 121DA(5). (71ZJ) (1) Before exercising powers under this Act to recover an overpayment of a non-benefit payment from a person (“P”)— (a) the Secretary of State must give a notice (an “overpayment notice”) to P, and (b) the condition in subsection (5) must be met (opportunity for P to challenge the notice). (2) The Secretary of State may give P an overpayment notice only if— (a) P has been convicted of an offence (under this Act or any other enactment), or (b) it appears to the Secretary of State that there are grounds to institute proceedings against P for an offence (under this Act or any other enactment), in relation to the overpayment. (3) An overpayment notice must— (a) state the amount that the Secretary of State regards as an overpayment, (b) provide the Secretary of State’s reasons for regarding that amount as an overpayment, (c) set out the effect of the giving of the overpayment notice, and (d) set out P’s right to seek a review of the notice and the right to appeal the outcome of that review (see section 71ZK). (4) In subsection (3)(c), the reference to the effect of the giving of the overpayment notice is a reference to the Secretary of State’s powers to— (a) invite P to agree to a penalty under section 115A in relation to the overpayment; (b) recover the overpayment (if P agrees to pay such a penalty, or is convicted of an offence, in relation to the overpayment). (5) The condition in this subsection is met where— (a) the time for P to seek a review of the overpayment notice has passed without P seeking a review, or (b) if P sought a review of the notice within the time allowed, the review has taken place and— (i) the period mentioned in section 71ZK(6)(a) for P to appeal against the outcome of the review has passed without P bringing an appeal, or (ii) P’s appeal (including any onward appeal) against the outcome of the review has been withdrawn, abandoned or finally determined. (71ZK) (1) A person (“P”) given an overpayment notice under section 71ZJ may apply to the Secretary of State for a review of the notice on the following grounds— (a) that there has been no overpayment of a non-benefit payment, or (b) that the amount stated in the notice is not correct. (2) An application under subsection (1) must be made before the end of the period of 1 month beginning with the day after the day on which P was given the notice. (3) On a review, the Secretary of State may— (a) uphold the notice, (b) amend the notice, or (c) revoke the notice. (4) The Secretary of State must notify P of the outcome of the review. (5) Where an overpayment notice is upheld or varied on a review, P may appeal to the First-tier Tribunal against the notice on the following grounds— (a) that there has been no overpayment, or (b) that the amount stated in the notice is not correct. (6) An appeal under subsection (5) may not be brought after the end of— (a) the period of 1 month beginning with the day after the day on which P is notified of the outcome of the review, or (b) such longer period (if any) as the Tribunal considers reasonable in all the circumstances. (7) The First-tier Tribunal may— (a) uphold the notice, (b) vary the notice, or (c) revoke the notice.

Recovery and enforcement mechanisms

94

• (1) The Social Security Administration Act 1992 is amended as follows.

• (2) In Part 3, after section 80 insert—

(80A) (1) This section applies in relation to— (a) section 80B (restrictions on use of further methods), (b) section 80C (and Schedule 3ZA) (recovery from a person’s bank accounts etc), and (c) section 80D (and Schedule 3ZB) (disqualification from driving). (2) References to a recoverable amount are to— (a) an amount which is recoverable by virtue of any provision of sections 71 to 78, and (b) a penalty which is payable by virtue of any provision of sections 115A to 115D, other than an amount or a penalty relating to a devolved benefit. (3) For the purposes of this Part, 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. (4) References to a “liable person” are to a person liable to pay a recoverable amount. (5) Nothing in Schedule 3ZA or Schedule 3ZB affects any other method of recovery or enforcement that is available in relation to a recoverable amount. (80B) (1) The Secretary of State may not exercise a power under Schedule 3ZA or Schedule 3ZB for the purpose of recovering an amount from a liable person unless the Secretary of State has— (a) given the liable person a reasonable opportunity to settle their liability in respect of the amount, (b) notified the liable person that the Secretary of State may exercise the power for the purpose of recovering the amount if the liable person does not settle their liability in respect of the amount, and (c) given the liable person a summary of how the power would be exercised. (2) The Secretary of State may not— (a) make a direct deduction order under Schedule 3ZA, (b) re-start a requirement to make deductions and payments that has been suspended under paragraph 16 of Schedule 3ZA, or (c) apply for a suspended or immediate DWP disqualification order under Schedule 3ZB, in respect of a liable person if subsection (3) or (4) applies. (3) This subsection applies if it is reasonably possible to recover the amount from the liable person by way of deductions from earnings. (4) This subsection applies if the liable person is entitled to and in receipt of a relevant benefit. (5) The Secretary of State may not exercise the powers under Schedule 3ZB for the purpose of recovering an amount from a liable person unless satisfied that it is not reasonably possible to recover the amount by way of a direct deduction order under Schedule 3ZA. (6) Subsections (7) and (8) apply where a liable person becomes entitled to and in receipt of a relevant benefit at a time when— (a) a direct deduction order under Schedule 3ZA, or (b) an immediate DWP disqualification order under Schedule 3ZB, has effect in relation to the liable person. (7) In a case within subsection (6)(a), the Secretary of State must revoke or suspend the direct deduction order. (8) In a case within subsection (6)(b)— (a) the Secretary of State must notify the court that made the immediate DWP disqualification order that the person to whom the order relates has become entitled to and in receipt of a relevant benefit, and (b) a court officer must make an order (without a hearing) revoking the immediate DWP disqualification order. (9) In this section— - “court officer” means a member of the staff of the court in question authorised by the court for the purposes of subsection (8)(b); - “deductions from earnings” means deductions from earnings under, or by virtue of, section 71 or 71ZD; - “relevant benefit” means a benefit that is— administered by the Secretary of State with responsibility for social security, and recoverable under section 71 or 71ZB.

• (3) In section 111 (delay, obstruction etc of inspector), in subsection (1)(b), after “otherwise than” insert “under Schedule 3ZA, Schedule 3B or”.

• (4) In section 191 (interpretation), at the appropriate places insert the following definitions—

• “direct deduction order” has the meaning given by paragraph 1 of Schedule 3ZA;

;

• “immediate DWP disqualification order” has the meaning given by paragraph 2(2) of Schedule 3ZB;

;

• “lump sum direct deduction order” has the meaning given by paragraph 1(5) of Schedule 3ZA;

;

• “regular direct deduction order” has the meaning given by paragraph 1(4) of Schedule 3ZA;

;

• ““suspended DWP disqualification order” has the meaning given by paragraph 1(3) of Schedule 3ZB;

.

Recovery from bank accounts etc

95

• (1) The Social Security Administration Act 1992 is amended as follows.

• (2) After section 80B (inserted by section 94 of this Act) insert—

(80C) Schedule 3ZA (recovery from bank accounts) makes provision for a recoverable amount to be recoverable directly from a person’s bank account.

• (3) After Schedule 3 insert, as Schedule 3ZA, the Schedule in Schedule 5 to this Act.

• (4) In section 190 (Parliamentary control of orders and regulations), in subsection (1), after paragraph (ab) insert—

(ac) regulations making provision in reliance on paragraph 25(3) of Schedule 3ZA; or

.

Disqualification from driving

96

• (1) The Social Security Administration Act 1992 is amended in accordance with subsections (2) and (3).

• (2) After section 80C (inserted by section 95(2) of this Act) insert—

(80D) Schedule 3ZB makes provision for a liable person to be disqualified from driving while some or all of a recoverable amount remains unrecovered.

• (3) After Schedule 3ZA (inserted by section 95(3) of this Act) insert, as Schedule 3ZB, the Schedule in Schedule 6 to this Act.

• (4) The Road Traffic Offenders Act 1988 is amended in accordance with subsections (5) to (7).

• (5) In section 27 (production of licence), in subsection (3), after “Child Support Act 1991” insert “or paragraph 5 of Schedule 3ZB to the Social Security Administration Act 1992”.

• (6) In section 37 (effect of order of disqualification), in subsection (1A), at the end of paragraph (a)—

• (a) omit the “or”, and

• (b) insert—

(aa) the disqualification is for a period shorter than 56 days under paragraph 2 of Schedule 3ZB to the Social Security Administration Act 1992, or

.

• (7) In section 42 (removal of disqualification), in subsection (6), after “Act” insert “or under paragraph 2 of Schedule 3ZB to the Social Security Administration Act 1992”.

• (8) In the Road Traffic Act 1988, in section 164 (power of constables to require production of driving licence etc), in subsection (5), after “required under” insert “paragraph 5 of Schedule 3ZB to the Social Security Administration Act 1992,”.

Code of practice

97

In the Social Security Administration Act 1992, after section 80D (inserted by section 96 of this Act) insert—

(80E) (1) The Secretary of State must issue a code of practice about the exercise of the Secretary of State’s functions under Schedule 3ZA and Schedule 3ZB. (2) The code of practice must include provision about— (a) the giving of notices to banks requiring the provision of information under Schedule 3ZA; (b) the processing (within the meaning of section 3(4) of the Data Protection Act 2018) of information received in response; (c) the circumstances in which penalties may be issued to banks; (d) the circumstances in which the Secretary of State expects to exercise functions under Schedule 3ZB. (3) Before issuing the code of practice for the first time, the Secretary of State must carry out a public consultation on a draft of the code. (4) The requirement in subsection (3) may be satisfied by public consultation carried out before this section comes into force. (5) The Secretary of State may from time to time revise and re-issue the code of practice. (6) The Secretary of State must lay the code of practice, or any reissued code of practice, before Parliament.

Rights of audience

98

In the Social Security Administration Act 1992, after section 80E (inserted by section 97 of this Act) insert—

(80F) (1) An officer of the Secretary of State who is authorised by the Secretary of State for the purposes of this section has a right of audience and the right to conduct litigation in relation to proceedings for or in connection with the recovery of overpayments under a provision of this Part before— (a) a magistrates’ court, (b) the county court, and (c) the Crown Court. (2) In this section, “right of audience” and “right to conduct litigation” have the same meanings as in section 119 of the Courts and Legal Services Act 1990.

Recovery of costs

99

• (1) The Social Security Administration Act 1992 is amended as follows.

• (2) In section 71ZE, omit subsection (3).

• (3) After section 80F (inserted by section 98 of this Act) insert—

(80G) Any costs which the Secretary of State reasonably incurs in recovering an amount that is recoverable under any provision of sections 71 to 80, Schedule 3ZA or Schedule 3ZB may be recovered by the Secretary of State as if they were amounts recoverable under that provision.

Recovery: further provision

100

In the Social Security Administration Act 1992, after section 80G (inserted by section 99 of this Act) insert—

(80H) (1) Subsection (2) applies in relation to any provision for the disclosure or obtaining of information made by or under this Part. (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 to 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) In this Part, references to giving a notice or other document (however expressed) include sending the notice or document by post.

Chapter 5 — Offences, penalties etc

Offences: non-benefit payments

101

• (1) The Social Security Administration Act 1992 is amended as follows.

• (2) In section 111A (dishonest representations for obtaining benefit etc)—

• (a) in subsection (1), in the words after paragraph (b), after “legislation” insert “or a non-benefit payment”;

• (b) after subsection (1G) insert—

(1H) For the purposes of subsections (1A) to (1G), references to— (a) a person being entitled to, or having a right to receive, a payment under a provision of the relevant social security legislation include references to a person being entitled to, or having a right to receive, or qualifying for, a non-benefit payment, and (b) a person’s entitlement to a payment under a provision of the relevant social security legislation include references to a person’s entitlement to, or qualification for, a non-benefit payment.

• (3) In section 112 (false representations for obtaining benefit etc)—

• (a) after subsection (1) insert—

(1ZA) A person is guilty of an offence if, for the purpose of obtaining a non-benefit payment for themselves or another person, they— (a) make a statement or representation which they know to be false, or (b) produce or furnish, or knowingly cause or knowingly allow to be produced or furnished, any document or information which they know to be false in a material particular.

;

• (b) after subsection (1F) insert—

(1G) For the purposes of subsections (1A) to (1F), references to— (a) a person being entitled to, or having a right to receive, a payment under a provision of the relevant social security legislation include references to a person being entitled to, or having a right to receive, or qualifying for, a non-benefit payment, and (b) a person’s entitlement to a payment under a provision of the relevant social security legislation include references to a person’s entitlement to, or qualification for, a non-benefit payment.

• (4) In section 121DA(5) (interpretation of Part 6), at the appropriate place insert—

• “non-benefit payment” means a prescribed payment which— is not a payment of a relevant social security benefit, and is made by the Secretary of State with responsibility for social security for the purposes of providing financial assistance to a person, whether directly or indirectly.

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

102

• (1) Section 115A of the Social Security Administration Act 1992 (penalty as alternative to prosecution) is amended in accordance with subsections (2) to (6).

• (2) After subsection (1A) insert—

(1B) This section also applies where— (a) an overpayment notice has been given to a person (“P”) under section 71ZJ (overpayment notice in relation to non-benefit payment), and (b) in relation to the overpayment notice, the condition in subsection (1C) is met. (1C) The condition in this subsection is met where— (a) the time for P to seek a review of the overpayment notice under section 71ZK has passed without P seeking a review, or (b) if P sought a review of the notice within the time allowed, the review has taken place, and— (i) the period mentioned in section 71ZK(6)(a) for P to appeal against the outcome of the review has passed without P bringing an appeal, or (ii) P’s appeal (including any onward appeal) against the outcome of the review has been withdrawn, abandoned or finally determined.

• (3) In subsection (2)(a), after “above” insert “, or in relation to the overpayment notice referred to in subsection (1B),”.

• (4) In subsection (3), after “(1)” insert “or (1B)”.

• (5) In subsection (8), in the words before paragraph (a), after “section” insert “, except in relation to a case referred to in subsection (1B),”.

• (6) After subsection (8) insert—

(8A) In relation to a case referred to in subsection (1B), “overpayment” has the meaning given in section 71ZI(1).

• (7) In section 115B of the Social Security Administration Act 1992 (penalty as alternative to prosecution: colluding employers etc), in subsection (2)(b), after “benefit offence” insert “or an offence in relation to an overpayment of a non-benefit payment”.

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

103

• (1) The Social Security Fraud Act 2001 is amended as follows.

• (2) In section 6B(2) (loss of benefits in case of conviction, penalty or caution for benefit offence)—

• (a) in paragraph (a)—

• (i) omit the words from “section 115A” to “or”, and

• (ii) for the words “the corresponding provision for Northern Ireland” substitute “penalty as alternative to prosecution in Northern Ireland”, and

• (b) omit sub-paragraph (i) of paragraph (b).

• (3) In section 6C (section 6B: supplementary provision)—

• (a) in subsection (2)(b) omit the words “the Social Security Act 1998 or”, and

• (b) in subsection (3) omit the words “the Social Security Act 1998 or”.

Powers of Scottish Ministers

104

• (1) The following provisions of this Act have effect as if they were pre-commencement enactments for the purposes of section 53 of the Scotland Act 1998, read with section 32 of the Scotland Act 2016—

• (a) sections 76 and 77;

• (b) section 99, so far as relating to an amount that is recoverable by the Scottish Ministers under Part 3 of the Social Security Administration Act 1992;

• (c) section 100.

• (2) Accordingly, an individual who for the time being has the Scottish Ministers’ authorisation for the purposes of Part 6 of the Social Security Administration Act 1992, in accordance with section 109A of that Act as amended by section 76 of this Act, has the functions conferred by sections 109B to 109C of that Act, as amended or, in the case of section 109BZA, as inserted, by section 76 of this Act.

Part 3 — General

Application and limitation

105

• (1) Subject to subsection (2), any function conferred by a provision of this Act (including by way of amendments to another enactment) is exercisable—

• (a) so far as the function relates to investigations or enforcement, in respect of things done or not done before the provision comes into force, and

• (b) so far as the function relates to the recovery of money, for the purposes of recovering money which a public authority (whether or not the public authority on which the function is conferred) was entitled to recover before the provision comes into force.

• (2) Subsection (1)(a) does not apply in relation to the amendments made by—

• (a) section 101 (offences: non-benefit payments), and

• (b) section 102 (penalty as alternative to prosecution: extension to non-benefit payments).

• (3) Subsection (4) applies in relation to an action—

• (a) for an amount that a relevant public authority is entitled to claim from a person as a result of fraud which the person carried out, before the day on which this section comes into force, in connection with coronavirus, and

• (b) in relation to which a limitation period of less than 12 years from the date on which the cause of action accrues would otherwise have applied.

• (4) The time limit for bringing the action is 12 years beginning with the day on which the relevant public authority discovers the fraud or could with reasonable diligence discover it (whether that day is before, on or after the day on which this section comes into force).

• (5) For the purposes of subsections (3) and (4)—

• (a) a “relevant public authority” is a person who—

• (i) exercises functions of a public nature, and

• (ii) is not a devolved Scottish authority;

• (b) an authority is a “devolved Scottish authority” if its functions—

• (i) are exercisable only in or as regards Scotland, and

• (ii) are wholly or mainly functions that do not relate to reserved matters within the meaning of the Scotland Act 1998.

• (6) For the purposes of subsection (3), “coronavirus” has the meaning given by section 1(1) of the Coronavirus Act 2020.

• (7) In the Limitation Act 1980, in section 38 (interpretation), in subsection (11)—

• (a) in paragraph (a), after “1992,” insert “including as amended by the Public Authorities (Fraud, Error and Recovery) Act 2025,”,

• (b) omit “or” at the end of paragraph (b), and

• (c) at the end of paragraph (c) insert

, or (d) Part 1 of the Public Authorities (Fraud, Error and Recovery) Act 2025,

.

• (8) In the Prescription and Limitation (Scotland) Act 1973, in Schedule 1 (obligations affected by prescriptive periods of 5 years under section 6), in paragraph 2(fb)(i), at the end insert “, including as amended by the Public Authorities (Fraud, Error and Recovery) Act 2025”.

Power to make consequential provision

106

• (1) The Secretary of State or the Minister may by regulations make provision that is consequential on this Act.

• (2) Regulations under this section may amend, repeal or revoke provision made by or under an Act passed—

• (a) before this Act, or

• (b) later in the same session of Parliament as this Act.

• (3) Regulations under this section are to be made by statutory instrument.

• (4) A statutory instrument containing regulations under this section that amend or repeal provision made by an Act (whether alone or with other provisions) may not be made unless a draft of the statutory instrument has been laid before, and approved by a resolution of, each House of Parliament.

• (5) Any other statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of either House of Parliament.

Financial provision

107

There is to be paid out of money provided by Parliament—

• (a) any expenditure incurred under, or by virtue of, this Act by a Minister of the Crown, a person holding office under His Majesty or a government department, and

• (b) any increase attributable to this Act in the sums payable under or by virtue of any other Act out of money so provided.

Extent

108

• (1) This Act extends to England and Wales and Scotland, subject as follows.

• (2) Part 1 of this Act extends to England and Wales only.

• (3) Any amendment, repeal or revocation made by this Act has the same extent as the provision amended, repealed or revoked.

Commencement

109

• (1) Except as provided by subsection (2), this Act comes into force on such day as the Secretary of State or the Minister for the Cabinet Office may by regulations appoint.

• (2) The following provisions come into force on the day on which this Act is passed—

• (a) this Part, and

• (b) any other provision of this Act so far as it confers power to make regulations or is otherwise necessary for enabling the exercise of such a power on or after the day on which this Act is passed.

• (3) Different days may be appointed under subsection (1) for different purposes or different areas.

• (4) The Secretary of State or the Minister for the Cabinet Office may by regulations make transitional or saving provision in connection with the coming into force of any provision of this Act.

• (5) The power to make regulations under subsection (4) includes power to make different provision for different purposes.

• (6) Regulations under this section are to be made by statutory instrument.

Short title

110

This Act may be cited as the Public Authorities (Fraud, Error and Recovery) Act 2025.

Schedule 1

Introduction

1

This Schedule contains modifications of the provisions of the Police and Criminal Evidence Act 1984 mentioned in section 7(2) for the purposes of their application to authorised investigators in accordance with section 7(1).

General modifications

2

• (1) Each reference to a constable (however expressed) is to be read as including a reference to an authorised investigator.

• (2) Each reference to an offence is to be read as a reference to an offence of fraud against a public authority, except for the reference to an offence in section 21(8)(b).

• (3) Each reference to a criminal investigation is to be read as a reference to a criminal investigation in connection with an offence of fraud against a public authority.

Specific modifications

3

• (1) Section 15 (search warrants: safeguards) is to be read as if—

• (a) in subsection (2)(c), for “articles or persons” there were substituted “material”;

• (b) in subsection (6)(b), for “articles or persons” there were substituted “material”.

• (2) Section 16 (execution of warrants) is to be read as if—

• (a) in subsections (3A) and (3B), for the words “a police officer of at least the rank of inspector”, in each case, there were substituted “an authorised investigator of at least the grade of senior executive officer”;

• (b) after subsection (3B) there were inserted—

(3C) In subsections (3A) and (3B), the references to an authorised investigator of at least the grade of senior executive officer include— (a) an authorised investigator who has a grade that is equivalent to that of a senior executive officer, and (b) an authorised investigator who is a higher executive officer, or has a grade equivalent to that of a higher executive officer, who has been authorised in writing for the purposes of those subsections by an authorised investigator who is a grade 7 or has a grade that is equivalent to, or higher than, that of a grade 7.

;

• (c) in subsection (5)(a), the words “, if not in uniform,” were omitted;

• (d) in subsection (9)(a), for “articles or persons sought were” there were substituted “material sought was”.

• (3) Section 21 (access and copying) is to be read as if in subsection (3)(b), the reference to the police were a reference to an authorised investigator.

• (4) Section 22 (retention) is to be read as if—

• (a) for subsection (1), there were substituted—

(1) Subject to subsection (4), anything which has been— (a) seized by an authorised investigator, (b) taken away by an authorised investigator following a requirement made by virtue of section 19 or 20, or (c) seized or taken away by another person under any enactment and accepted by an authorised investigator, may be retained so long as is necessary in all the circumstances.

;

• (b) after subsection (2) there were inserted—

(2A) Subsection (2B) applies where an authorised investigator— (a) has seized something or taken something away following a requirement made by virtue of section 19 or 20 on the basis that it is evidence of an offence, and (b) considers that the thing may be evidence that is relevant to an investigation of an offence (whether or not the offence mentioned in paragraph (a)) in relation to which another person has functions. (2B) Where this subsection applies— (a) an authorised investigator may transfer the thing to that person, (b) where that person considers that the thing may be evidence that is relevant to an investigation in relation to which that person has functions, that person may accept and retain the thing, and (c) any provision of an enactment that applies to anything seized or taken away by that person applies to the thing as if it had been seized or taken away by that person for the purposes of the investigation of the relevant offence. (2C) In subsection (2B)(c), “enactment” includes an enactment contained in subordinate legislation within the meaning of the Interpretation Act 1978.

;

• (c) for subsection (5) there were substituted—

(5) Nothing in this section affects any power of a court to make an order under section 8 of the Public Authorities (Fraud, Error and Recovery) Act 2025.

;

• (d) subsection (6) were omitted.

• (5) Schedule 1 (special procedure) is to be read as if—

• (a) in paragraph 1, for “one or other of the sets of access conditions” there were substituted “the first set of access conditions”;

• (b) in paragraph 2(a)(ii), for “and does not also include excluded material” there were substituted “, or consists of or includes excluded material,”;

• (c) paragraph 3 (second set of access conditions) were omitted;

• (d) in paragraph 12—

• (i) in paragraph (a)(i), for “either set of access conditions” there were substituted “the first set of access conditions”;

• (ii) paragraph (b) were omitted.

Schedule 2

Part 1 — Powers to establish the PSFA and transfer functions

Main powers

1

• (1) The Minister may by regulations—

• (a) provide that a body corporate called the Public Sector Fraud Authority (and referred to in this Schedule as “the PSFA”) is established;

• (b) provide for the transfer to the PSFA of all or any of the functions to which this paragraph applies.

• (2) The Minister may by regulations provide for the transfer to a public authority other than the PSFA of all or any of the functions to which this paragraph applies.

• (3) This paragraph applies to the functions initially conferred on the Minister by Chapters 1 to 5 of Part 1 of this Act (including functions conferred by an amendment of another enactment), except any function of making regulations or issuing a code of practice.

• (4) A function transferred under sub-paragraph (2) may subsequently be transferred to the PSFA under sub-paragraph (1)(b).

• (5) But a function transferred to the PSFA under sub-paragraph (1)(b) may not subsequently be transferred to another public authority under sub-paragraph (2).

Authorised officers

2

• (1) The reference in paragraph 1(3) to functions initially conferred on the Minister includes functions initially conferred on authorised officers.

• (2) In relation to a function initially conferred on an authorised officer, references in this Part of this Schedule to the transfer of the function to another body are to be read as references to the transfer of the function to an authorised officer of that body.

• (3) Where—

• (a) a function initially conferred on an authorised officer is transferred by regulations under paragraph 1, and

• (b) as a result of any provision of Chapters 1 to 5 of Part 1 of this Act, that function could be exercised only by an authorised officer of a particular rank, grade or description,

the regulations must provide for the function to be exercised by an authorised officer of the transferee of a corresponding grade, rank or description.

• (4) In this paragraph, “authorised officer” includes “authorised investigator”.

Associated modifications

3

• (1) Where functions are transferred to the PSFA or another public authority under paragraph 1, the Minister may by regulations—

• (a) make provision about the application, with any necessary modifications, of Part 1 of this Act in relation to the PSFA or other authority;

• (b) provide for the Minister to give the PSFA or other authority (or its authorised officers) general or specific directions about the exercise of the transferred functions.

• (2) Where functions are transferred to or from a public authority, other than the Minister or the PSFA, under paragraph 1, the Minister may by regulations—

• (a) make any modifications that the Minister considers appropriate in connection with the transfer to the constitutional arrangements, funding arrangements or the functions of the authority;

• (b) make provision in relation to the authority corresponding to that enabled by paragraph 19 (transfer schemes) in relation to—

• (i) the PSFA, where functions are being transferred to the authority, or

• (ii) a “relevant person”, where functions are being transferred from the authority.

• (3) In sub-paragraph (2)(a), “constitutional arrangements” includes the matters referred to in section 3(2) of the Public Bodies Act 2011.

• (4) Regulations under paragraph 1 or this paragraph may amend—

• (a) Part 1 of this Act, except this Schedule, and

• (b) any provision amended by Part 1 of this Act.

Procedure

4

Regulations under this Part of this Schedule are subject to the affirmative procedure.

Part 2 — Constitution etc

Introduction and status

5

• (1) This Part applies if regulations are made under paragraph 1(1) establishing the PSFA.

• (2) The PSFA acts on behalf of the Crown.

Constitution

6

• (1) The PSFA is to consist of—

• (a) a chair, who is to be a non-executive member,

• (b) at least 3, but not more than 6, other non-executive members,

• (c) a chief executive, and

• (d) at least 2, but not more than 5, other executive members.

• (2) The members are to be appointed in accordance with paragraphs 7 to 10.

Appointment of non-executive members

7

• (1) The Minister is to appoint the non-executive members.

• (2) A person may not be appointed as a non-executive member if the person is a member of the PSFA’s staff.

Appointment of executive members

8

• (1) The chair is to appoint the chief executive and the other executive members, subject to paragraph 9.

• (2) The executive members are to be members of the PSFA’s staff.

Interim chief executive

9

• (1) The Minister may appoint a person (an “interim chief executive”) to be the PSFA’s chief executive until the appointment of a chief executive by the chair under paragraph 8(1) first takes effect.

• (2) An interim chief executive may incur expenditure and do other things in the name and on behalf of the PSFA until the PSFA is first constituted in accordance with paragraph 6(1).

• (3) In exercising the power in sub-paragraph (2), an interim chief executive must act in accordance with any directions given by the Minister.

• (4) Paragraphs 8, 11 and 13 do not apply to an interim chief executive.

Appointment of members: eligibility

10

• (1) The Minister may by regulations make provision about criteria which must be met by persons in order to be appointed as members of the PSFA.

• (2) The regulations may make provision for a person to cease to be a member of the PSFA if the person no longer meets those criteria.

• (3) Regulations under this paragraph are subject to the negative procedure.

Terms of membership

11

• (1) A member of the PSFA holds and vacates office in accordance with the terms of the member’s appointment, subject to provision made by or under this Schedule.

• (2) A member may resign from office by giving notice to the appropriate person.

• (3) A member may be removed from office by notice given by the appropriate person on the grounds that the member—

• (a) has without reasonable excuse failed to discharge the member’s functions, or

• (b) is, in the opinion of the appropriate person, unable or unfit to carry out the member’s functions.

• (4) A person ceases to be—

• (a) a non-executive member of the PSFA upon becoming a member of its staff;

• (b) an executive member of the PSFA upon ceasing to be a member of its staff.

• (5) In this paragraph, “appropriate person” means—

• (a) in the case of the non-executive members, the Minister;

• (b) in the case of the executive members, the chair.

Non-executive members: payments

12

• (1) The PSFA must pay, or make provision for the payment of, such remuneration, pensions, allowances or gratuities as the Minister determines to or in respect of a person who is or has been a non-executive member.

• (2) Sub-paragraph (3) applies if—

• (a) a person ceases to be a non-executive member, and

• (b) the Minister determines that the person should be compensated because of special circumstances.

• (3) Where this sub-paragraph applies, the PSFA must pay the person compensation of such amount as the Minister may determine.

Staffing

13

• (1) The PSFA may—

• (a) appoint employees, and

• (b) make such other arrangements for the staffing of the PSFA as it determines.

• (2) The PSFA must pay its staff such remuneration as may be determined in accordance with this paragraph.

• (3) The PSFA must pay, or make provision for the payment of, such pensions, allowances, gratuities or compensation as may be determined in accordance with this paragraph to or in respect of any person who is or has been a member of staff of the PSFA.

• (4) Members of staff of the PSFA are to be appointed on such other terms as may be determined in accordance with this paragraph.

• (5) A matter is determined in accordance with this paragraph if—

• (a) in the case of a matter which relates to an executive member, it is determined by the chair;

• (b) in the case of a matter which relates to any other member of staff, it is determined by the PSFA.

• (6) Before making a determination as to remuneration, pensions, allowances, gratuities or compensation for the purposes of sub-paragraph (2) or (3), the PSFA must obtain the approval of the Minister as to its policy on that matter.

Discharge of functions etc

14

• (1) The PSFA must have regard to the need to exercise its functions effectively, efficiently and economically.

• (2) The PSFA may authorise the following to exercise any of its functions—

• (a) a member of the PSFA,

• (b) a member of the PSFA’s staff authorised for that purpose, or

• (c) a committee or sub-committee.

• (3) An authorisation may be to such extent and on such terms as the PSFA determines.

• (4) The PSFA may pay such remuneration and allowances as it may determine to any person who—

• (a) is a member of a committee or a sub-committee, but

• (b) is not a member of staff of the PSFA,

whether or not that person is a non-executive member of the PSFA.

Procedure

15

• (1) The PSFA may determine its own procedure and the procedure of any of its committees or sub-committees.

• (2) The validity of any proceedings of the PSFA, or any committee or sub-committee of the PSFA, is not affected by any vacancy among its members or by any defect in the appointment of such a member.

Annual report

16

• (1) As soon as reasonably practicable after the end of each financial year the PSFA must prepare a report on the exercise of its functions during that financial year.

• (2) The PSFA must send the report to the Minister.

• (3) The Minister must lay the report before Parliament and publish it.

• (4) In this Schedule, “financial year” means—

• (a) the period beginning with the date on which the PSFA is established and ending with 31 March following that date, and

• (b) each successive period of 12 months.

Seal and evidence

17

• (1) The application of the PSFA’s seal must be authenticated by a signature of—

• (a) a member of the PSFA, or

• (b) another person authorised for that purpose by the PSFA.

• (2) A document purporting to be duly executed under the PSFA’s seal or signed on its behalf—

• (a) is to be received in evidence, and

• (b) is to be taken to be executed or signed in that way, unless the contrary is shown.

• (3) But this paragraph does not apply in relation to any document which is, or is to be, signed in accordance with the law of Scotland.

Supplementary powers

18

• (1) Subject to sub-paragraph (2), the PSFA may do anything it thinks necessary or expedient for the purposes of, or in connection with, the exercise of its functions.

• (2) The PSFA may not—

• (a) borrow money;

• (b) accept gifts of money, land or other property.

Transfer schemes

19

• (1) The Minister may make one or more schemes (“transfer schemes”) for the purpose of transferring to the PSFA such property, rights and liabilities of a relevant person as the Minister considers appropriate for the purposes of enabling the PSFA to exercise functions transferred to it by regulations under paragraph 1.

• (2) In this paragraph, “relevant person” means—

• (a) the Secretary of State,

• (b) the Minister, or

• (c) the Chancellor of the Duchy of Lancaster.

• (3) The things that may be transferred under a transfer scheme include—

• (a) property, rights and liabilities that could not otherwise be transferred;

• (b) property acquired, and rights and liabilities arising, after the making of the scheme;

• (c) criminal liabilities.

• (4) A transfer scheme may make supplementary, incidental, transitional or consequential provision and may, in particular—

• (a) create rights, or impose liabilities, in relation to property or rights transferred;

• (b) make provision about the continuing effect of things done by a relevant person in respect of anything transferred;

• (c) make provision about the continuation of things (including legal proceedings) in the process of being done by, on behalf of, or in relation to, a relevant person in respect of anything transferred;

• (d) make provision for the shared ownership or use of property;

• (e) make provision which is the same as or similar to the Transfer of Undertakings (Protection of Employment) Regulations 2006 (S.I. 2006/246);

• (f) make other supplemental, incidental, transitional or consequential provision.

• (5) A transfer scheme may provide for—

• (a) modifications by agreement;

• (b) modifications to have effect from the date when the original scheme came into effect.

• (6) For the purposes of this paragraph—

• (a) references to rights and liabilities include rights and liabilities relating to a contract of employment;

• (b) references to the transfer of property include the grant of a lease.

• (7) For the purposes of sub-paragraph (6)—

• (a) an individual who holds employment in the civil service is to be treated as employed by virtue of a contract of employment, and

• (b) the terms of the individual’s employment in the civil service are to be regarded as constituting the terms of the contract of employment.

Amendments to other enactments

20

In Part 2 of the table in paragraph 3 of Schedule 1 to the Public Records Act 1958 (definition of public records), at the appropriate place insert—

Public Sector Fraud Authority.

21

In Schedule 2 to the Parliamentary Commissioner Act 1967 (departments etc subject to investigation), at the appropriate place insert—

• Public Sector Fraud Authority.

22

In Part 2 of Schedule 1 to the House of Commons Disqualification Act 1975 (bodies of which all members are disqualified), at the appropriate place insert—

• The Public Sector Fraud Authority.

23

In Part 6 of Schedule 1 to the Freedom of Information Act 2000 (public authorities to which that Act applies), at the appropriate place insert—

• The Public Sector Fraud Authority.

24

In Part 1 of Schedule 19 to the Equality Act 2010 (authorities subject to the public sector equality duty), after the group of entries under the heading “Environment, housing and development” insert—

• Fraud against the public sector The Public Sector Fraud Authority.

Part 3 — Power to change name

25

• (1) The Minister may by regulations amend section 73 of this Act and this Schedule so as to change the name of the PSFA.

• (2) Regulations under sub-paragraph (1) may not be made after regulations are made under paragraph 1(1)(a).

• (3) Regulations under sub-paragraph (1) are subject to the negative procedure.

Schedule 3

Part 1 — Eligibility verification

1

The Schedule to be inserted into the Social Security Administration Act 1992 after Schedule 3A is—