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UK Parliament · Public Bill · No. 3921

Public Authorities (Fraud, Error and Recovery) Act 2025

[As Introduced]
A
BILL
to

The Public Authorities (Fraud, Error and Recovery) Act 2025 establishes new legal powers and procedures for public sector organisations (such as local councils, NHS trusts, and government departments) to detect, investigate, and recover funds lost through fraud or administrative error. The Act creates streamlined mechanisms for authorities to reclaim overpaid benefits, grants, contracts payments, and other public money, while also setting out enforcement powers and protections for individuals subject to recovery action. It aims to improve public financial accountability and reduce losses to taxpayers while introducing clearer rules about how recovery processes must operate.

Presented by Liz Kendall
supported by Baroness Sherlock.
✓ Passed into lawPublicLords
Official Ballot · The People's Chamber

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The people's count86 votes
17% Aye · 1583% No · 71
MPs' vote430 MPs
80% Ayes · 34320% Noes · 87
The democratic gap

63% , a wide gap

Outcome mismatch, the public would block this bill, but Parliament passed it.

Bill passage

Commons

  • 1st reading22 Jan 2025
  • 2nd reading3 Feb 2025
  • Committee stage25 Feb 2025
  • Report stage29 Apr 2025
  • 3rd reading29 Apr 2025

Lords

  • 1st reading30 Apr 2025
  • 2nd reading15 May 2025
  • Committee stage4 Jun 2025
  • Report stage15 Oct 2025
  • 3rd reading23 Oct 2025
Royal Assent2 Dec 2025