Overview

This bill aims to strengthen the UK government's ability to prevent and tackle fraud against public authorities, and recover money paid out due to fraud or error. It grants the Cabinet Office Minister wide-ranging investigatory and recovery powers, including the ability to directly deduct overpayments from bank accounts and wages.

Description

Investigatory Powers:

The bill grants the Minister for the Cabinet Office significant investigatory powers, including the ability to issue information notices requiring individuals to provide information related to suspected fraud. These powers are subject to review and appeal mechanisms. The bill also allows authorized investigators to utilize powers similar to those of police officers under the Police and Criminal Evidence Act 1984, subject to specified modifications.

Recovery Powers:

The bill introduces new methods for recovering overpayments, including direct deduction orders from bank accounts and deduction from earnings orders. These orders are subject to assessments of hardship and fairness, and individuals have rights to review and appeal the decisions. The bill also allows for recovery orders, which treat recoverable amounts as if they were payable under a court order.

Civil Penalties:

The bill enables the Minister to impose civil penalties for fraud and non-compliance with investigatory and recovery requirements. These penalties are subject to procedural safeguards, including opportunities for representation and review. There are provisions for appeals against penalty notices.

Public Sector Fraud Authority (PSFA):

The bill establishes the PSFA, transferring some of the Minister's functions to this new body. The PSFA will have its own constitution and operational procedures.

Government Spending

The bill will likely lead to increased government spending on the establishment and operation of the PSFA, as well as on staffing for investigations and recovery efforts. Specific figures are not provided in the bill text.

Groups Affected

• Public Authorities: Will benefit from strengthened fraud prevention and recovery mechanisms.
• Individuals suspected of fraud: May face investigation, civil penalties, and recovery actions including wage and bank account deductions.
• Banks: Will be required to cooperate with direct deduction orders and may face penalties for non-compliance.
• Employers: May be required to deduct overpayments from employees' earnings and face penalties for non-compliance.
• Journalists: The bill includes provisions to protect journalistic material, but access to certain information could still be possible.

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