Recommendation 5

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.