The UK government is introducing new powers to tackle fraud and recover funds directly from bank accounts under the Fraud, Error, and Recovery Bill. Sponsored by the Department for Work and Pensions (DWP), the bill aims to strengthen fraud prevention across public authorities, particularly in benefit fraud cases involving Universal Credit and other welfare payments.
Officials believe the new measures will be used extensively to improve fund recovery rates and strengthen anti-fraud enforcement in sectors like the NHS and social welfare.
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Key Features of the Fraud, Error, and Recovery Bill
- Direct Fund Recovery – Authorities will have the power to withdraw owed funds directly from fraudsters’ bank accounts.
- Expanded Investigative Powers – Officials can demand bank statements and financial records.
- Eligibility Verification Measure – Banks and financial institutions must flag accounts of benefit claimants to confirm their eligibility.
- Public Sector Fraud Prevention – The bill applies to multiple government sectors, including the NHS and social services.
How Will the Bill Impact NHS Fraud Prevention?
Alex Rothwell, NHS counter-fraud chief, presented evidence to MPs, stating that NHS fraud recovery rates were only 12% in 2023/24. He emphasized:
“The bill will be incredibly helpful for us to recover more money from people suspected of fraud.”
The bill would help recover funds from lower-value fraud cases, such as employees who have stolen £5,000 or £10,000 and then left the organisation.
However, Rothwell raised concerns about how anti-fraud checks would be applied to private healthcare providers working within the NHS.
DWP’s Plan for Benefit Fraud Prevention
The DWP’s new Eligibility Verification Measure will require banks to monitor benefit claimants’ accounts to ensure payments go to genuine recipients.
- The initial focus will be on Universal Credit, Pension Credit, and Employment and Support Allowance recipients.
- This measure will prevent fraudulent claims while ensuring that legitimate beneficiaries receive their entitlements.
Concerns and Future Challenges
While the bill is designed to improve fraud recovery, experts have raised key concerns:
- Privacy Issues – The increased bank scrutiny on benefit claimants may violate privacy rights.
- Enforcement in Private Healthcare – How fraud checks will be applied in privately operated NHS services is unclear.
- Fraud Prevention vs. Recovery – While recovering funds is important, experts argue that preventing fraud before it happens should be the priority.
The Fraud, Error, and Recovery Bill is set to change the way fraud is tackled in the UK, with stronger financial oversight, direct fund recovery, and expanded investigations. The bill is expected to improve NHS fraud recovery and prevent benefit fraud, but concerns remain regarding privacy, enforcement in private healthcare, and balancing fraud prevention with financial recovery.
With its broad scope and extended powers, the bill will likely be widely used across public services, ensuring that government funds are protected from fraud.
FAQ’s
What is the UK’s Fraud, Error, and Recovery Bill?
The bill grants authorities the power to recover fraudulent funds, demand bank statements, and prevent benefit fraud.
How will the new fraud law affect NHS fraud prevention?
The bill will help NHS fraud teams recover more funds by allowing direct withdrawals from fraudsters’ accounts and improving fraud detection.
Who will be affected by the new fraud prevention measures?
The bill targets benefit fraud (Universal Credit, Pension Credit, Employment and Support Allowance) and fraud in public services like the NHS and government departments.
How will banks be involved in fraud prevention?
Banks will be required to monitor benefit claimants’ accounts to confirm eligibility and flag suspicious activity.
What are the concerns about the Fraud, Error, and Recovery Bill?
Concerns include privacy issues, enforcement in private NHS contractors, and whether the focus should be on fraud prevention rather than just recovery.
Where will the Thousands of Gallows be erected in the UK. As it seems we Disabled can look forward to being Hung out to be Financially Drained. Bravo Rachel Reeves.Maggie would have been Proud to have you standing opposite you in the house of the Commoners.