Overview

• The government says the Public Authorities (Fraud, Error and Recovery) Bill will start in April 2026 on a phased, test‑and‑learn basis set out in 11 DWP factsheets, with projected savings of £1.5 billion over five years.
• Banks and building societies will be required to alert the DWP to possible breaches of means‑tested benefit rules under an Eligibility Verification Measure without sharing transaction histories or granting direct account access, with penalties for oversharing.
• New enforcement tools include the ability to request bank statements, seek court orders to recover overpayments directly from bank accounts, and apply for driving disqualifications of up to two years for persistent non‑repayment.
• Investigatory powers will expand to include search warrants to seize devices and the ability to obtain data from airlines and other organisations to identify claims made from abroad, with the civil time limit for Covid fraud cases extended to 12 years.
• Privacy groups including Big Brother Watch and Age UK describe the plans as mass financial surveillance, while ministers cite recent prosecutions such as a 20‑month sentence in Manchester to justify tougher enforcement.