Oversight, inspections and safeguards in the Public Authorities (Fraud, Error and Recovery) Bill: Factsheet - GOV.UK

The Bill includes new and important safeguards, including new reporting mechanisms and independent oversight on the face of the Bill to provide assurance the new powers are used

proportionately and effectively.

The Bill provides the Cabinet Office with new powers to investigate public sector fraud outside of tax and social security on behalf of other departments and public bodies.

In support of this, the PSFA will commission His Majesty’s Inspectorate of Constabulary and Fire & Rescue Services (HMICFRS), an established independent body, to inspect the use of the new

investigative powers listed below which can include the end-to-end investigative process. In addition, the PSFA will also create a new Independent Chair, to whom a new internal oversight

team within PSFA will report. These bodies will carry out reviews and report on whether the use of the powers is in keeping with the legislation, codes of practice and relevant guidance, as

well as being effective. Ministers will publish these reports and lay them in Parliament.

The Bill gives Authorised Officers in the Cabinet Office information gathering and sharing powers. The information gathering powers enable the PSFA to compel individuals and organisations to

provide information for the purposes of a fraud investigation. The information sharing powers also enable other public authorities to be able to share information with the PSFA, and for the

PSFA to share information with any other person, where it is for the purpose of investigating or preventing fraud against public authorities, or for the purpose of taking enforcement action

in connection with fraud against public authorities.

The Bill gives Authorised Investigators in the Cabinet Office the power to apply, under the Police and Criminal Evidence Act 1984 (PACE) for court mandated search warrants and orders, enter

premises with a warrant, and search for and seize evidence, as well as deal with the evidential chain thereafter.

The Bill will allow the PSFA to recover public money that has been obtained through fraud or error on behalf of other public bodies following an investigation by the PSFA into suspected

fraud. The PSFA can recover public money from those who can afford to pay but who refuse to do so, by recovering debt from a person’s bank account via Direct Deduction Orders (DDOs), or from

earnings via Deduction from Earnings Orders. Deduction orders will only be applied by Authorised Officers after efforts to agree voluntary repayment with the debtor have failed.

This will provide the PSFA with the ability to issue a Civil Penalty Notice as an alternative route to a criminal prosecution when public sector fraud has occurred and for non-compliance

with certain requirements in the Bill. The following safeguards apply to these measures:

The Bill builds upon DWP’s existing social security legislation to modernise and strengthen the Department’s response to fraud and error in the social security system.

The new oversight and safeguards will build upon the significant measures already in-place across the Department as part of business-as-usual processes. This includes training and support

for all DWP frontline operations staff to identify and support our most vulnerable customers, and Advanced Customer Support teams to support those with more complex requirements.

The Bill includes new independent oversight to provide further assurance. DWP will commission His Majesty’s Inspectorate of Constabulary Fire & Rescue Services (HMICFRS) and His Majesty’s

Inspectorate of Constabulary in Scotland, to inspect the use of the new investigative powers which can include the end-to-end investigation process. These bodies will carry out reviews and

report on whether the use of powers is in keeping with the legislation, codes of practice and relevant guidance, as well as being effective. Ministers will publish that report and lay it in

Parliament.

The Bill modernises the DWPs approach to information gathering – aligning with those held by other government departments and to help prove or disprove a suspicion of fraud. It creates a

single, legal framework compelling information from all information holders, unless exempted, and allows for requests and responses to be received digitally.

The Eligibility Verification Measure will help DWP to identify incorrect payments in the social security system sooner by requiring banks and financial institutions to examine their own

datasets to highlight where someone may not be meeting the specific eligibility criteria of a benefit.

The Bill gives Economic and Serious Organised Crime (ESOC) Authorised Investigators in DWP the power to apply, under the Police and Criminal Evidence Act 1984 (PACE), for court mandated

search warrants and orders, enter premises with a warrant, and search for and seize evidence, as well as deal with the evidential chain thereafter. It also mirrors powers of entry, search

and seizure for Scotland with some modifications to ensure the powers operate appropriately for the territorial extent.

DWP is broadening its debt recovery and enforcement powers to more effectively pursue recovery from those no longer on benefits or in PAYE employment with other sources of income or capital,

who repeatedly refuse to pay money owed. This will remove the disparity with DWP’s ability to recover debt from those on benefits or on PAYE. Powers to recover debt from bank accounts

through lump sum or regular deduction orders and to seek from the court temporary disqualification from holding a driving licence broadly mirror arrangements in the Child Maintenance Service

(CMS) which have proved effective in debt recovery.

DWP is extending the types of payments an Administrative Penalty (Ad Pen) can be applied to, so they include non-social security payments, such as grants.