Established procedural rules and maximum percentage limits for recovering public debt via direct bank account and salary deductions.

These Regulations establish the procedural framework for the Minister to recover public sector debts through direct deduction orders (DDOs) against bank accounts and deduction from earnings orders (DEOs).

They apply to banks, employers, and individuals identified as liable for public sector fraud or error in England and Wales.

The instrument specifies maximum deduction rates based on income bands, ranging from 3% to 40%, and mandates that certain funds like social security benefits and employer payroll costs are exempt from recovery actions.

Additionally, the regulations define time limits for bank compliance, administrative fee caps, and the priority of these orders relative to other court-ordered debts.

The Regulations enacted the second set of commencement provisions for the Public Authorities (Fraud, Error and Recovery) Act 2025 on April 1st, 2026, activating sections related to public sector fraud investigation, non-benefit payment enforcement, and associated amendments to social security law.

These Regulations bring into force the second tranche of provisions from the Public Authorities (Fraud, Error and Recovery) Act 2025 starting on 1st April 2026, specifically activating sections establishing new powers for investigating and recovering losses from fraud against public authorities outside of tax and social security, introducing criminal offences and administrative penalties for non-benefit payment fraud, and extending relevant Police and Criminal Evidence Act 1984 powers to authorized investigators.

The Regulations brought Section 98 of the Public Authorities (Fraud, Error and Recovery) Act 2025 into force immediately, and set a two-month commencement date for Sections 78, 79, and Schedule 3 relating to eligibility verification.

These Regulations enact the first commencement provisions for the Public Authorities (Fraud, Error and Recovery) Act 2025, bringing Section 98 into force immediately to grant designated officers of the Secretary of State rights of audience for debt recovery proceedings, and scheduling the delayed commencement of key provisions related to eligibility verification (Sections 78, 79, and Schedule 3) for two months after the Act's passing, which establishes powers to compel financial institutions to supply data to verify benefit entitlement.