Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
DWP gains new power to directly recover debts from bank accounts without court order.
Conclusion
The Department will also have a new power to recover money owed from an individual’s bank account, without the need for a court order, where the individual is not on benefits or in PAYE employment.40 It told us that this power was about fairness and making sure that it treated people who chose not to pay debts owed to the Department consistently. It said it would make sure that those involved had the financial resilience to allow it to recover the money owed.41 Reporting changes of circumstances
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.