These Regulations may be cited as the Public Authorities (Fraud, Error and Recovery) Act 2025 (Commencement No. 1) Regulations 2025.
The Public Authorities (Fraud, Error and Recovery) Act 2025 (Commencement No. 1) Regulations 2025
Published: Wed 3rd Dec 25
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.
Arguments For
Enables the Secretary of State's designated officers to gain legal rights of audience and conduct litigation in various courts specifically for debt recovery proceedings related to benefits claims.
Implements crucial initial measures for verifying claimant eligibility, allowing the government to require financial institutions to share necessary information to combat benefit fraud, error, and overpayments.
Establishes clear legislative backing for eligibility verification notices, ensuring a structured legal framework for gathering data required to maintain the integrity of the social security system.
Arguments Against
The immediate commencement of rights of audience for state officers may streamline debt recovery but raises concerns about procedural fairness versus representation for claimants being pursued.
Requiring banks and financial institutions to disclose claimant information for eligibility verification significantly impacts data privacy and confidentiality obligations for these institutions.
The provisions introduce new offenses related to money laundering reporting requirements, potentially creating compliance burdens or legal conflicts for the regulated sector when complying with new eligibility verification notices.
The Secretary of State makes these Regulations in exercise of the powers conferred by section 109(1) and (3) of the Public Authorities (Fraud, Error and Recovery) Act 2025 ootnote[1]{}.
The Secretary of State formally issues these statutory instruments.
The authority to create these regulations comes directly from specific powers granted by Subsections 109(1) and (3) of the Public Authorities (Fraud, Error and Recovery) Act 2025.
Citation and interpretation1.
This section establishes the official title of the regulation and defines key terms used throughout the document.
(1)
This decree specifies the formal legal name by which these regulations will be referenced.
(2)
In these Regulations “the Act” means the Public Authorities (Fraud, Error and Recovery) Act 2025.
This clause provides a definition for the abbreviation "the Act," clarifying that it refers specifically to the Public Authorities (Fraud, Error and Recovery) Act 2025 throughout these regulations.
Commencement2.
This section details which parts of the primary Act come into legal force and on what dates the commencement takes effect.
(1)
Section 98 of the Act (rights of audience) comes into force on the day after the day on which these Regulations are made.
Subsection 2(1) brings Section 98 of the Act into force the day immediately following the date these commencement regulations are officially made.
(2)
The following provisions of the Act come into force, in so far as they are not already in force ootnote[2]{}, at the end of the period of two months beginning with the day on which the Act is passed—
(a)
section 78 (eligibility verification);
(b)
section 79 (eligibility verification: independent review);
(c)
Schedule 3 (eligibility verification etc).
This second part sets a delayed commencement date for certain provisions, specifically two months after the Act was first passed.
These provisions include Section 78 (eligibility verification), Section 79 (independent review mechanisms for verification), and Schedule 3, which likely deals with the technical framework for verification.
Signed by authority of the Secretary of State for Work and Pensions
Andrew Western
Parliamentary Under Secretary of State
Department for Work and Pensions
This section authenticates the regulations, showing they were signed on December 3rd, 2025, by Andrew Western, acting as the Parliamentary Under Secretary of State for the Department for Work and Pensions, on behalf of the Secretary of State.
Explanatory Note
(This note is not part of the Regulations)
These are the first commencement regulations made under the Public Authorities (Fraud, Error and Recovery) Act 2025 (c. 28) (“the Act”).
Regulation 2(1) brings into force section 98 of the Act, on the day after the day on which these Regulations are made.
Section 98 of the Act inserts new section 80F into the Social Security Administration Act 1992 (c. 5) (“the SSAA”), which grants rights of audience and rights to conduct litigation to designated officers of the Secretary of State in a magistrates’ court, the county court or the Crown Court in England and Wales for or in connection with debt recovery proceedings.
Regulation 2(2) brings certain provisions of the Act into force, in so far as they are not already in force, at the end of the period of two months beginning with the day on which the Act is passed.
Section 78 of the Act amends the SSAA by inserting new section 121DB and Schedule 3B, making provision for the Secretary of State to issue an eligibility verification notice and creating a new legal framework for the eligibility verification measures. The measures make provision for the Secretary of State to require banks and other financial institutions to provide information to help the Secretary of State verify a claimant’s entitlement to benefits and identify incorrect payments.
Section 79 of the Act amends the SSAA by inserting new sections 121DC and 121DD. New section 121DC establishes a requirement for independent oversight of the new eligibility verification measures to help ensure accountability, compliance, and effectiveness. New section 121DD makes further provision in relation to this role and provides for information to be shared for the purposes of the independent person’s review.
Part 1 of Schedule 3 to the Act contains new Schedule 3B. This inserted schedule establishes the power and legal framework for requiring information by way of an eligibility verification notice to assist the Secretary of State in identifying incorrect payments of certain benefits. Part 2 of Schedule 3 amends sections 330 and 331 of the Proceeds of Crime Act 2002 (c. 29), so that certain offences relating to the failure to disclose knowledge or suspicion of money laundering in the regulated sector are not committed where the information obtained is solely as a result of complying with an eligibility verification notice.
The Explanatory Note clarifies that these are the first commencement regulations for the 2025 Act (c. 28).
It confirms Regulation 2(1) implements Section 98, which adds Section 80F to the Social Security Administration Act 1992 (SSAA), granting the Secretary of State’s officers the right to represent the state in court for benefit debt recovery in England and Wales.
Regulation 2(2) brings forward measures creating an eligibility verification notice system (Section 78 and Schedule 3), allowing the Secretary of State to demand information from banks to check benefit entitlement and spot overpayments.
Section 79 introduces independent oversight for these verification measures.
Furthermore, Schedule 3 includes an amendment to the Proceeds of Crime Act 2002, exempting regulated entities from certain money laundering disclosure offenses if the information shared was provided only in response to an eligibility verification notice.
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