Public Authorities (Fraud, Error and Recovery) Bill 2025
JUSTICE has given written and oral evidence to the House of Commons, and briefed throughout the Lords, on human rights and rule of law issues in the Public Authorities (Fraud Error and Recovery) Bill 2025.
The Bill creates new intrusive state investigatory powers to tackle fraud, empowering both the existing DWP (Department for Work and Pensions) Fraud department, and creating a new "Public Sector Fraud Authority". Powers include entry, search and seizure powers when there is a reasonable suspicion of fraud, the reasonable use of force in the exercise of those powers (DWP only) and a power to demand financial information from banks about benefits recipients' accounts, even when there is no suspicion of wrongdoing.
JUSTICE's briefing has focused on the following issues:
1) The right to privacy and mass financial surveillance for benefits recipients: the new "Eligibility Verification Notice" powers require banks to provide information about benefits recipients to the DWP, for the purpose of fraud detection. The power can be invoked by the DWP without any suspicion of wrongdoing whatsoever; it is a financial surveillance spot check. We have joined Big Brother Watch and others in highlighting these powers will disproportionately interfere with the right to privacy of those in receipt of benefits and others who have connected accounts.
2) "Reasonable" suspicion of fraud in the age of AI: DWP and PSFA (Public Sector Fraud Authority) will newly be empowered to enter, search and seize property of benefits recipients they suspect of fraud. This suspicion must be "reasonable". However, increasing use of fraud algorithms - and the lack of transparency around such algorithms - poses a real risk of arbitrary and discriminatory exercise of powers. International scandals, in the Netherlands and Australia, have unfairly investigated thousands of people of fraud, when in fact the suspicion came from algorithms making generalisations and stereotyping certain types of people as being more likely of fraud because of their characteristics (nationality, income, single parent status) rather than their actions. We have urged Parliament to improve safeguards in the Bill to ensure generalisations and stereotypes will not be taken into account when deciding what is "reasonable suspicion".
3) Adequacy of safeguards: the new powers will be subject to various safeguards, including an Independent Reviewer and the remit of the Independent Office of Police Conduct. We have highlighted issues with the IOPC's capacity, and stressed the need for the Independent Reviewer to have the requisite powers, funding and remit to effectively hold the DWP and PSFA to account.
4) DWP and the use of force: The Government wants to give the DWP (not the PSFA) the power to use reasonable force when exercising their entry search and seizure powers. The power has been drafted broadly, to include force against things and people. While the Explanatory Notes say that force will not be used against people, this is not reflected in the drafting of the Bill. It will not be a legal restriction nor will it be legally enforceable. The breadth of the power is of particular concern given the vulnerability of some benefits claimants and the DWP's "deficient" safeguarding as found by the Work and Pensions Committee as of May 2025. JUSTICE is supporting amendments by Lord Vaux at Report Stage (October 2025) to restrict the use of force to things, not people, or remove it from the Bill entirely.
House of Commons Committee Stage
Lords Committee Stage (Three Briefings) - June 2025:
Public Authorities (Fraud, Error and Recovery) Bill Briefing Three – Part 2 and the DWP
Lords Report Stage - October 2025: