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Public Authorities (Fraud, Error and Recovery) Bill

22 January 2025

Proposing MP
Leicester West
Type
Written Ministerial Statement
Department
Department for Work and Pensions

At a Glance

Issue Summary

The statement addresses the introduction of the Public Authorities (Fraud, Error and Recovery) Bill aimed at preventing and deterring public sector fraud and error.

Action Requested

The Government is introducing the Public Authorities (Fraud, Error and Recovery) Bill to help identify, prevent, and deter public sector fraud and error. The bill aims to deliver benefits of £1.5bn over five years by extending DWP's powers and giving the PSFA in Cabinet Office broader investigative powers.

Key Facts

  • The Public Authorities (Fraud, Error and Recovery) Bill is expected to deliver benefits of £1.5bn over five years as scored by the OBR.
  • Fraud against the public sector costs taxpayers around £10bn a year.
  • Since the pandemic, £35bn of taxpayers’ money has been incorrectly paid to those not entitled.
  • The Public Sector Fraud Authority (PSFA) within the Cabinet Office will gain powers to investigate and address fraud across other departments and public bodies.
  • Currently, at least £3bn per year is being lost to fraud and error outside tax and social security.
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