What’s in the Bill: Key Highlights for Finance Professionals
1. Expanded Powers for the Public Sector Fraud Authority (PSFA)
- The Bill empowers the PSFA to investigate fraud across public authorities (excluding DWP and HMRC), compelling information, enforcing civil penalties, and recovering funds directly from individuals’ earnings or bank accounts
- Debt recovery tools include Deduction from Earnings Orders and Direct Deduction Orders, following affordability checks and court determinations where necessary
2. Enhanced Capabilities for DWP in Social Security Fraud
- DWP investigators will gain powers to obtain search warrants, gather digital third-party data (e.g., from banks), and require information via digital notices to locate overpayments or fraud
3. Tougher Sanctions and Extended Limitations
- Civil penalties serve as a quicker alternative to lengthy criminal prosecutions, reinforcing deterrence
- Importantly, the Bill extends the limitation period for Covid-related fraud cases from six to twelve years, allowing for longer investigations and pursuits of recovered funds
Key Considerations and Concerns
- Privacy and surveillance worries: Critics warn the Bill risks invasive monitoring, particularly for vulnerable benefit claimants, raising concerns over presumption of innocence and data misuse
- Driving licence suspensions: As reported, the Bill may enable DWP to enforce up to two-year driving bans for non-repayments over £1,000—sparking debates about proportionality and fairness
- Industry readiness pressure: Financial institutions and accountants need to prepare for new regulatory obligations—ensuring systems, staff training, and client communications are robust and compliant.
