Overview

The Public Authorities (Fraud, Error and Recovery) Bill aims to strengthen the UK government's ability to prevent and tackle fraud against public authorities, recover wrongly paid funds, and introduce improved methods for recovering debts. It grants new investigatory powers and introduces methods for recovering debts from bank accounts and earnings.

Description

The bill establishes a framework for tackling fraud and recovering mispaid funds across various public authorities. Key aspects include:

Investigatory Powers:

The Minister for the Cabinet Office receives powers to investigate suspected fraud, issue information notices (compelling individuals to provide information), and access information held by other public authorities. The bill also amends the Investigatory Powers Act 2016 to include the Cabinet Office and grants police-style powers (under the Police and Criminal Evidence Act 1984) to authorised investigators, subject to modifications detailed in Schedule 1.

Debt Recovery:

The bill details methods for recovering funds, including recovery notices, recovery orders, direct deduction orders (from bank accounts), and deduction from earnings orders. These powers are subject to safeguards to prevent hardship for individuals. Detailed procedures are outlined, including notices, opportunities for representations, reviews, and appeals processes.

Civil Penalties:

The Minister can impose civil penalties for fraud and non-compliance with information or recovery requests. These penalties are subject to a procedural framework, including notices of intent, opportunities for representations, reviews, and appeals. The bill specifies maximum penalty amounts for different offenses.

The Public Sector Fraud Authority (PSFA):

Schedule 2 establishes the PSFA, a body corporate to which functions from the Minister may be transferred. This includes provisions concerning the PSFA's constitution, membership, and operations.

Social Security Provisions:

Part 2 of the bill extends similar powers to the Secretary of State for the Department for Work and Pensions (DWP) concerning social security payments. This includes powers to require information, conduct searches and seizures, recover overpayments, and impose penalties.

Government Spending

The bill will likely lead to increased government spending on staffing, investigations, and the establishment and running of the PSFA. However, precise figures are not included in the provided text.

Groups Affected

• Public Authorities: The bill grants them new powers to recover mispaid funds and deal with fraud.
• Individuals suspected of fraud: They are subject to investigations, information notices, and potential civil penalties.
• Individuals with debts to public authorities: They may face debt recovery actions, including direct deductions from bank accounts or earnings.
• Banks: They are required to cooperate in direct deduction orders and face penalties for non-compliance.
• Employers: They are required to cooperate in deduction from earnings orders.
• The Public Sector Fraud Authority: The bill creates this new body, with its own staff and operational costs.

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