Overview
- The Public Authorities (Fraud, Error and Recovery) Act received Royal Assent on 2 December, with the Department for Work and Pensions confirming a phased rollout through 2026.
- The new powers allow officials to recover unpaid welfare overpayments by taking money directly from bank accounts when claimants refuse to repay.
- The DWP will receive bank data to identify overpayments and potential fraud, while the government says it will not view spending details or use accounts to verify eligibility.
- Officials can ask courts to suspend driving licences for debts over £1,000 when repayment requests have been repeatedly ignored.
- The measures are forecast to save £1.5bn by 2029/30, certified by the OBR, as part of a wider recovery drive targeting £14.6bn with up to 3,000 extra staff and a doubled 12‑year civil claim limit for pandemic fraud.