The UK Labour Government is committed to safeguarding public finances and protecting taxpayers’ money. The introduction of the Public Authorities (Fraud, Error & Recovery) Bill will help us to deliver our manifesto commitment to ensuring that every pound is spent effectively.

This Bill introduces measures that are tough on criminals, fair for claimants, and provide confidence to the taxpayer.

We will not tolerate the unacceptable levels of fraud and waste that the Tories left behind. In 2023/24 alone, over £7 billion of public money was overpaid due to fraud, with £2.4 billion lost to benefit overpayments made in error. We will address these issues head-on.

This landmark legislation will update anti-fraud powers for the first time in two decades to ensure we keep pace with criminals’ evolving tactics. DWP investigators will now have the ability to apply directly to the courts for warrants to enter properties, seize evidence such as luxury goods and cash, and bring organised criminals to justice.

Banks and building societies will support efforts to stop overpayments before they spiral into unmanageable debts, helping claimants avoid the stress of financial hardship caused by mistakes.

Where individuals no longer in the system refuse to repay debts despite having the means, courts will have the power to disqualify them from holding a driving license. These measures are tough but fair, ensuring the system works for those who genuinely need it.

Up to £21 billion is lost to fraud and error in public spending every year, often due to limited resources and powers in public bodies. This is why the Bill empowers the Public Sector Fraud Authority (PSFA) to investigate fraud across government departments and recover taxpayer money.

The PSFA’s new enforcement unit will have powers to search and seize evidence, reducing the burden on police resources. By doubling the time limit for civil claims related to COVID-19 fraud from six to twelve years, the PSFA will also have more time to recover public money stolen during the pandemic.

Each of these measures are backed by strong safeguards and independent oversight to ensure powers are used appropriately and proportionately.

Fraud is not a victimless crime. It diverts resources from vital public services, enriches those who exploit the system, and even funds organised crime and terrorism. The Labour government is committed to tackling this head-on, protecting taxpayers’ money, and restoring confidence in our public services.

This is about fairness, integrity, and delivering value for every taxpayer. Under this Bill, we will save up to £1.5 billion over the next five years—money that will go towards ensuring the most vulnerable get the help they need.

These reforms are backed by significant investment: 3,180 additional fraud and error staff will be employed, and £110 million in 2025/26 has been allocated to strengthen checks on Universal Credit claims. This government is working to save £7.5 billion by 2029/30, funding the restoration of vital public services left crumbling after 14 years of Tory neglect.

This UK Labour government is demonstrating a zero-tolerance approach to fraud and waste in public services. We are building a fairer, more accountable system that works for everyone and delivers on our commitment to restoring trust in politics.