Plans to recover stolen cash and impose driving bans on those who repeatedly fail to pay back taxpayer money moved a step closer today, as Ministers vowed “to address the unacceptable levels of fraud and error we’ve inherited”

• The Public Authorities (Fraud, Error, and Recovery) Bill, set to save £1.5 billion over the next five years, progresses to the Lords 
• The Bill follows the biggest welfare fraud and error budget package in recent history 
• Changes could help boost investment in public services and protect the public purse, as part of the Plan for Change

New souped-up powers from the Department of Work and Pensions (DWP), which will allow DWP to recover money directly from the bank accounts of fraudsters who can repay but are wilfully gaming the system in order not to, passed an important stage in the House of Commons as it had its Third Reading. 

The Public Authorities (Fraud, Error, and Recovery) Bill, which could put these measures into law, will help DWP to catch fraudsters, prevent overpayments and protect taxpayer’s money.  

The Bill will save the taxpayer £1.5 billion over the next five years and is part of wider plans set out in the Autumn budget and Spring Statement to save £9.6 billion by 2030. This means taxpayer’s money can be invested in public services as part of the government’s Plan for Change.   

Minister for Transformation, Andrew Western said:   

Enhancing our powers is essential to fulfilling our commitment to the public, as they will enable us to address the unacceptable levels of fraud and error we’ve inherited and better protect public funds.

By strengthening our ability to catch criminals and prevent overpayments, we can keep up with the evolving nature of welfare fraud while reducing the risk of people falling further into debt, ensuring that more resources are directed towards improving the lives of people across the country.

The new legislation comes as the government is dealing with the broken welfare system it inherited, with out-of-control levels of fraud and error costing the taxpayer around £10 billion a year – with a total of £35 billion of taxpayers’ money incorrectly paid to those not entitled to the money since the pandemic.    

https://www.wired-gov.net/wg/news.nsf/articles/Fraud+Bill+to+save+1.5+billion+progresses+to+the+Lords+30042025160500