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 money, and improve the efficiency of recovery processes. The bill introduces new investigatory powers, recovery mechanisms, and civil penalties, and establishes a Public Sector Fraud Authority.

Description

This bill grants the Minister for the Cabinet Office (and, potentially via transfer, the new Public Sector Fraud Authority) wide-ranging powers to investigate suspected fraud against public authorities. These include the power to issue information notices compelling individuals and organizations to provide information, and powers of entry, search, and seizure (under modifications of the Police and Criminal Evidence Act 1984). The bill allows for the recovery of money paid due to fraud or error through various methods, including recovery orders, direct deductions from bank accounts, and deductions from earnings. It also establishes a framework for civil penalties for fraud and non-compliance, with varying levels of penalties depending on the offense. The bill also includes provisions for independent review of the Minister's actions and allows for appeals against decisions.

Key Investigatory Powers:

• Information notices compelling individuals to provide information.
• Powers of entry, search, and seizure (subject to safeguards).
• Information sharing between public authorities.

Key Recovery Mechanisms:

• Recovery orders (similar to court orders).
• Direct deduction orders from bank accounts (with safeguards against hardship).
• Deduction from earnings orders (with safeguards).

Civil Penalties:

• Penalties for fraud (up to 100% of the payment or benefit gained).
• Penalties for non-compliance with information requests or recovery orders (daily rates or fixed amounts).

Public Sector Fraud Authority:

The bill establishes the Public Sector Fraud Authority (PSFA) to take on some of the responsibilities currently held by the Minister for the Cabinet Office.

Government Spending

The bill will likely lead to increased government spending on staffing the new Public Sector Fraud Authority and the investigation and recovery processes. Exact figures are not provided in the bill text.

Groups Affected

• Public Authorities: Will benefit from strengthened fraud prevention and recovery mechanisms.
• Individuals and Organizations suspected of fraud: May face investigations, information requests, recovery actions, and civil penalties.
• Banks and Employers: Will be required to cooperate with recovery mechanisms (direct deductions from bank accounts and deductions from earnings), potentially incurring administrative costs.
• Individuals with joint bank accounts: May be affected if a joint account holder is subject to a direct deduction order.
• Employees: May face deductions from their earnings.

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