Source · Select Committees · Public Accounts Committee
Recommendation 5
5
Accepted
Report annually on usage and impact of new Public Authorities Act 2025 powers
Recommendation
The Department has not fully set out how it will use its new legal powers in a way that supports public trust. The Public Authorities (Fraud, Error and Recovery) Act, which received Royal Assent on 2 December 2025, gives the Department new powers to tackle fraud and error and recover debt. For example, it can now compel banks and other financial institutions to provide information to help verify a claimant’s eligibility for benefits, and third parties to provide information when it is conducting criminal investigations. It will also be able to recover money owed by individuals directly from their bank accounts without the need for a court order where an individual is not on benefits or in PAYE employment. It is important that the Department uses these extensive powers proportionately and effectively. The Department says it is putting in place safeguards to make sure it does so, such as issuing codes of practice, and it also highlights the role HM Inspectorate of Constabulary and Fire & Rescue Services will play in providing oversight of how it uses the new powers. recommendation The Department should report annually, in its annual reports and accounts, on how often it has used the powers in the Public Authorities (Fraud, Error and Recovery) Act 2025 and with what impact.
Government Response Summary
The government accepts the recommendation and states it will include proportionate and appropriate reporting on the use and impact of powers from the Public Authorities (Fraud, Error and Recovery) Act 2025 in its Annual Reports and Accounts as they are implemented, building on existing reporting.
Government Response
Accepted
HM Government
Accepted
The government agrees with the Committee’s recommendation. Recommendation implemented The department already reports in its Annual Reports and Accounts, information on payment accuracy, investigations and debt recovery, which are the three areas relevant to the powers in the Public Authorities (Fraud, Error and Recovery) Act 2025 (the Act). It is the department’s intention to include proportionate and appropriate reporting on the powers in the Act as they are implemented, in the Annual Report and Accounts. The information gathering, search and seizure and debt powers within the Act build on the department’s existing powers to investigate fraud and collect overpayments and will be covered as part of annual reporting. The Eligibility Verification Measure will additionally be subject to an annual independent review, as required in legislation. The Independent Reviewer will consider specifically whether the Eligibility Verification powers have been exercised correctly, and in line with its statutory Code of Practice, considering its impact and effectiveness. The Independent Reviewer will compile a report, annually, sharing this with the Secretary of State who is then required to publish this and lay a copy of it before Parliament. All measures legislated for in the Act were taken along with substantial new safeguards to ensure that powers are used transparently and in a secure way. These safeguards are measure-specific but include independent inspection and oversight of use and delivery, the requirements to consult on and have key Codes of Practice in place to govern delivery as well as tightly defined parameters in primary legislation.