Overview
- Peers accepted government concessions during parliamentary ping-pong, leaving the Public Authorities (Fraud, Error and Recovery) Bill ready for Royal Assent.
- From April 2026, the DWP can require banks to run Eligibility Verification Notices that test specified indicators and flag accounts, with only minimal data shared unless a trigger is hit.
- New powers will allow direct recovery of overpaid benefits from wages and bank accounts, with a phased national rollout planned between 2029 and 2031.
- The reforms respond to £9.7 billion in benefit overpayments in 2023–24, equal to 3.7% of total benefit spending.
- The Bill expands the Public Sector Fraud Authority’s remit for proactive investigations beyond tax and social security, while adding limits on force and a human decision-making requirement.