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Anti-Fraud Law Clears Royal Assent, Expanding DWP Bank-Data Powers

Officials say the crackdown will focus on high-risk benefits while applying safeguards that stop the department seeing personal spending details.

Overview

  • The Public Authorities (Fraud, Error, and Recovery) Act has received Royal Assent, enabling the Department for Work and Pensions to obtain bank-held data under an Eligibility Verification Measure.
  • The government projects £1.5 billion in savings by 2029/2030 through expanded data checks, modern tools, and tougher recovery powers.
  • Initial enforcement will target Universal Credit, Employment and Support Allowance, and Pension Credit, identified as carrying the highest fraud and error rates.
  • The Public Sector Fraud Authority gains stronger powers, and the time limit for bringing civil claims is doubled to 12 years to pursue long-running losses.
  • New tools include the ability to recover funds directly from bank accounts and, in persistent non-payment cases over £1,000, potential court-ordered driving licence suspensions.