Public Sector Fraud Authority: Civil Penalty Code of Practice

I would like to update the House that today the Government have published the Public Sector Fraud Authority’s civil penalties code of practice, associated with the Public Authorities (Fraud, Error and Recovery) Act 2025, as stipulated by Section 63 of the Act.

The Act introduced a new civil penalties regime for fraud against the public sector. The code provides further detail about how the PSFA civil penalty powers in the Act will be used, including how the PSFA’s authorised officers will operate and make decisions relating to their powers to issue civil penalties.

The code also includes information on the use and application of information sharing and gathering powers and debt recovery powers as set out in part 1 of the Act, in so far as it is relevant to the use and imposition of penalties. Additional information on these powers will be set out in guidance published separately.

There are a number of pertinent statutory safeguards detailed in the code, including the right to receive a clear notice, the opportunity to make formal representations, the provision for an internal review by a senior authorised officer, and the right of appeal to an independent tribunal. In addition, an independent reviewer will be appointed to conduct reviews of the PSFA’s powers, including civil penalty powers.

I am grateful to all those who took the time to contribute their views on the code when we ran a consultation between 8 December 2025 and 27 February 2026 seeking feedback. The feedback provided was detailed, considered and constructive, and the code has been strengthened as a result of this engagement.

Today’s action helps ensure that our public services are protected against fraudsters. I have every confidence that the code provides a solid and effective foundation to ensure the safe and proportionate use of the PSFA’s new powers.

[HCWS152]