Overview

The Public Authorities (Fraud, Error and Recovery) Bill aims to improve the prevention and detection of fraud against UK public authorities, as well as the recovery of funds lost due to fraud or error. It grants new powers to investigate and recover funds, introduces civil penalties for fraud and non-compliance, and establishes a Public Sector Fraud Authority.

Description

This bill focuses on enhancing the ability of public authorities to recover funds lost through fraud or error. Key aspects include:

Investigatory Powers:

The Minister for the Cabinet Office gains powers to issue information notices, compelling individuals to provide information related to suspected fraud. Powers of entry, search, and seizure, similar to those of the police, are granted under certain conditions and for investigations of fraud against public authorities. Information sharing between authorities is facilitated.

Recovery of Funds:

The bill outlines methods for recovering funds, including recovery notices, court orders, and direct deduction orders from bank accounts. It also allows for deductions from earnings, subject to safeguards against causing hardship. The bill specifies procedures for recovery actions and allows for reviews and appeals.

Civil Penalties:

The bill introduces civil penalties for fraud and for non-compliance with information requests or recovery orders. Penalties can be substantial and are subject to a process of review and appeal. A code of practice will guide the imposition of penalties, particularly concerning cooperative conduct.

Public Sector Fraud Authority (PSFA):

The bill establishes the PSFA to tackle public sector fraud, transferring relevant functions from the Minister for the Cabinet Office. The PSFA will have its own governance structure, staff, and reporting responsibilities.

Social Security Provisions:

The bill extends many of the powers and procedures to the Department for Work and Pensions (DWP) to tackle fraud and recover overpayments relating to social security benefits and other non-benefit payments. This includes new powers to obtain information and conduct searches, subject to safeguards.

Government Spending

The bill will likely increase government spending due to the establishment of the PSFA, the recruitment of staff, and the cost of investigating and prosecuting fraud cases. Exact figures are not specified in the bill text.

Groups Affected

• Public Authorities: Will benefit from improved tools to prevent and recover losses from fraud and error.
• Individuals suspected of fraud: May face investigation, civil penalties, and potential legal action.
• Banks and Employers: Will have new obligations to comply with information requests and deduction orders, potentially incurring administrative costs. They may also face penalties for non-compliance.
• Individuals receiving overpayments: May face investigation and recovery of overpaid social security benefits and other non-benefit payments.
• The Public Sector Fraud Authority: Will be responsible for significant operational and financial management.

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