Public Authorities (Fraud, Error and Recovery) Bill 2024-26: Lords amendments

The Public Authorities (Fraud, Error and Recovery) Bill 2024-26 is expected to return to the House of Commons on Wednesday 5 November 2025 for consideration of Lords amendments. This briefing provides an overview of amendments made to the bill in the House of Lords.

The bill, together with its explanatory notes, impact assessments and transcripts of the parliamentary stages, are available on the parliament.uk website.

What would the bill do?

The bill would introduce new powers to enable the Public Sector Fraud Authority (PSFA) within the Cabinet Office to investigate public sector fraud outside of the tax and social security systems. The bill would also introduce new powers to enhance the Department for Work and Pensions’ (DWP’s) ability to tackle fraud and error in the social security system.

Detailed background to the bill and its provisions can be found in the Library briefing prepared for the Commons second reading debate.

Public Sector Fraud Authority

Part 1 of the bill extends to England and Wales only and includes measures relating to the PSFA. It would give the PSFA powers to:

• investigate and recover fraud in any public authority
• initiate or adopt public sector fraud investigations at the request of an affected public authority
• compel information holders to provide information as part of a fraud investigation
• request communications data from telecommunications operators
• recover fraud-related debt directly from individuals’ earnings or bank accounts
• issue civil financial penalties
• bring action against fraud within an extended timeframe of twelve years

Department of Work and Pension fraud, error and debt recovery powers

Part 2 of the bill extends to England, Wales and Scotland, and would give the DWP powers to address fraud and error in the benefits system and recover overpayment debt. These include:

• expanding the range of third parties the DWP can compel to provide information in support of criminal investigations
• providing ‘eligibility verification’ powers to allow the DWP to require banks and other financial institutions to examine their data to help identify benefit fraud and error
• giving DWP investigators new powers to enter and search premises with a warrant and seize relevant material
• allowing the DWP to recover debts from individuals not on benefits or in Pay As You Earn (PAYE) employment by direct deductions from their bank accounts without having to go to court
• extending the scope of ‘administrative penalties’ to include fraud involving a wider range of DWP payments, not just benefits

Both part 1 of the bill on the PSFA and part 2 on DWP fraud, error and debt recovery powers contain measures setting out safeguards, reporting mechanisms and oversight arrangements for the new powers.

Passage of the bill House of Commons

The Public Authorities (Fraud, Error and Recovery) Bill was introduced in the House of Commons on 22 January 2025 and had its second reading on 3 February 2025.

The bill was considered by a public bill committee over 12 sittings between 25 February and 18 March 2025.

The committee agreed to three government technical or drafting amendments to part 1 of the bill. No amendments tabled by opposition parties or backbenchers to part 1 of the bill were agreed to.

A small number of minor government amendments to part 2 of the bill were agreed. No amendments tabled by opposition parties or backbenchers to part 2 of the bill were agreed.

The Commons Library briefing Public Authorities (Fraud, Error and Recovery) Bill 2024-25: Progress of the bill gives an overview of the bill’s progress through the House of Commons prior to report stage.

The bill completed its remaining stages in the Commons on 29 April 2025. A number of government amendments and new clauses, mainly technical or drafting amendments, were agreed to without division at report stage. No opposition or backbench amendments were agreed to at report. The bill passed third reading without a division.

The Lords Library briefing, Public Authorities (Fraud, Error and Recovery) Bill: HL Bill 96 of 2024–25, gives an overview of the Commons report stage and third reading.

House of Lords

The bill was introduced in the House of Lords on 30 April 2025 and received second reading on 15 May 2025.

Committee stage in the House of Lords took place over six days between 4 June and 25 June 2025. Government amendments to both part 1 and part 2 of the bill were agreed to. No opposition or backbench amendments were agreed to in committee.

The bill’s Lords report stage took place on 15 October and 21 October 2025.

Government and non-government amendments to both part 1 and part 2 of the bill were agreed at report stage.

The bill received a third reading on 23 October 2025, without a vote.

Amendments relating to the Public Sector Fraud Authority

Both government and non-government amendments to part 1 of the bill were agreed during the Lords stages.

More substantive government amendments concerned the recovery of sums from bank accounts and the establishment of the PSFA as an independent body.

At report stage, two groups of non-government amendments were agreed to following a division. An amendment would expand the PSFA’s powers to initiate fraud investigations and recover funds proactively, without requiring an invitation from the public authority concerned. Other amendments would strengthen ministerial and parliamentary oversight of officers authorised to carry out certain functions on behalf of the minister.

Amendments relating to DWP fraud, error and debt recovery powers

Both government and non-government amendments to part 2 of the bill were agreed during the Lords stages.

Most of the government amendments agreed were minor technical or drafting amendments, or amendments to remove unnecessary references or redundant provisions.

More substantive government amendments were agreed at report stage relating to Scotland, on the powers requiring banks to provide information to help verify eligibility for benefits, and on the scope of the powers to recover debts directly from bank accounts and to disqualify debtors from driving.

Three non-government amendments were agreed at report stage, following divisions. Two related to the eligibility verification powers, while the third concerned the use of reasonable force against persons by DWP authorised officers when exercising entry, search and seizure powers.