Overview

• The Public Authorities (Fraud, Error and Recovery) Bill will begin phased pilots for means-tested benefits in April 2026 using a test-and-learn approach.
• Banks and building societies must share only limited indicator data on potential eligibility breaches and face penalties for disclosing transaction details.
• New enforcement powers include direct seizure of funds from overpaid accounts, debt recovery from former claimants, and driving bans of up to two years for persistent fraudsters.
• Third-party organisations such as airlines will be required to provide eligibility flags to help detect improper overseas benefit claims.
• Implementation will be guided by codes of practice, inspection and reporting mechanisms, staff training and independent oversight to ensure proportionate use.