House of Commons
3 December 2025
May contain errors — check source documents for definitive information.
The Public Authorities (Fraud, Error and Recovery) Act 2025 creates a cross‑public‑sector framework to detect, investigate and recover money lost to fraud and error in public spending. It establishes a Public Sector Fraud Authority to oversee powers, introduces information notices and direct deductions from bank accounts or earnings, and adds independent oversight and safeguards. After a period of heated Commons–Lords negotiations over whistleblowing, safeguards for claimants, and how far powers should go, the bill became law in December 2025 with a strengthened governance and appeal framework.
The bill moved through all stages in both Houses, with Lords amendments aiming at tighter oversight and a formal whistleblower framework. The Commons adopted in‑lieu amendments and ultimately passed the bill, which received Royal Assent in December 2025. The process involved devolved‑administration consent and ongoing negotiations over timing and safeguards before the full package came into law.
In the Commons, the bill enjoyed broad support from Labour and other pro‑policy groups, while some opposition parties raised concerns about the reach of powers and safeguards. A notable clash over Lords amendments led to a Commons vote to disagree with a Lords amendment, but the final package incorporated Commons’ in‑lieu changes and passed to enactment. The party line showed Labour backing the bill, with Liberal Democrats, Greens, SNP, Plaid Cymru and some others opposing aspects of the powers and safeguards in various votes.
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Based on 2 recorded votes • Sorted by % Aye
Following agreement by both Houses on the text of the bill it received Royal Assent on 3 December. The bill is now an Act of Parliament (law).
The act would give the Cabinet Office minister new powers to detect fraud against public bodies, prevent and recover money paid in error or through fraud, and enforce recovery using tools such as information notices, recovery notices, direct bank deductions and deductions from earnings, with penalties for non‑compliance. It creates the Public Sector Fraud Authority to take on these functions and lays out procedures, reviews and appeals, plus enhanced investigatory powers for DWP and other authorities under updated safeguards and independent oversight. The package also broadens information sharing across public bodies and introduces processes for identifying and correcting overpayments, including penalties and court routes where needed.
An official list of motions and amendments for the Lords to consider in relation to Commons reasons and amendments to the Public Authorities (Fraud, Error and Recovery) Bill 2025. It shows where the Commons disagrees with Lords amendments and proposes in-lieu amendments, including new provisions on oversight of investigatory powers, creation and transfer of the Public Sector Fraud Authority, guidance and annual reporting, and rules on use of force and EVM information. The Lords will decide whether to insist on their amendments or accept the Commons' versions.
This Lords amendment paper for the Public Authorities (Fraud, Error and Recovery) Bill sets out motions for the Lords to not insist on several of their amendments and to accept the Commons’ amendments (in lieu) at various points—Clauses 2, 66 and 75, and Schedules 2–4. It shows the Lords proposing to adopt the Commons’ changes, including cases where the Commons has given reasons for disagreeing with a Lords’ amendment (e.g., Clause 75). This is the stage of reconciling the bill between the Lords and Commons before final passage.
The Lords have proposed amendments to the Public Authorities (Fraud, Error and Recovery) Bill aimed at tighter oversight of investigatory powers, including guidance, annual reporting, governance, and creating a Public Sector Fraud Authority with powers transferred to it. The Commons disagree and advance amendments in lieu that restrict when enforcement actions can occur (only at a public authority’s request or in the public interest), extend governance and record-keeping requirements, and adjust safeguards around information use and force. The document records ongoing Lords–Commons disagreements and the amendments each side has tabled.