Source · Select Committees · Public Accounts Committee
Recommendation 20
20
Accepted
New Act grants DWP expanded powers to compel third-party data for fraud investigations.
Conclusion
The Public Authorities (Fraud, Error and Recovery) Act, which received Royal Assent in December 2025, extends the Department’s powers to tackle fraud and error and recover any associated losses.36 The Department’s new powers include the ability to compel banks and other financial institutions to provide information to help it verify a claimant’s eligibility and entitlement for certain benefits. It will also have greater information-gathering powers whereby a larger range of third parties could be required to provide information to the Department in support of criminal investigations.37
Government Response Summary
The department already reports in its Annual Reports and Accounts, information on payment accuracy, investigations and debt recovery.
Government Response
Accepted
HM Government
Accepted
5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 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. 5.3 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. 5.4 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. 5.5 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.