Public Sector Fraud Authority

Baroness Coffey Excerpts

Monday 14th September 2026 Lords Chamber

Asked by

[Baroness Coffey]

To ask His Majesty’s Government why they have transferred the Public Sector Fraud Authority from the Cabinet Office to the Department for Work and Pensions, given the function and powers of the Minister of the Cabinet Office set out in Part 1 of the Public Authorities (Fraud, Error and Recovery) Act 2025.

[The Parliamentary Secretary, Cabinet Office, and Parliamentary Under-Secretary of State, Department for Digital, Culture, Media and Sport (Baroness Twycross) (Lab)]

My Lords, the Public Sector Fraud Authority’s repositioning into the Department for Work and Pensions reflects the Government’s commitment to tackling public sector fraud. Both organisations will use their unique expertise to tackle fraud and error in welfare and across the public sector. The Treasury will continue to co-sponsor the Public Sector Fraud Authority. A transfer of functions order will ensure that functions under the public authorities Act 2025 are transferred to the Secretary of State for Work and Pensions.

[Baroness Coffey (Con)]

My Lords, I start by saying that this is not intended to be a dig at the First Secretary of State, who I thought was poorly treated by the previous Prime Minister. However, the Public Authorities (Fraud, Error and Recovery) Act, which we passed only last year, was billed as key to tackling billions of pounds of fraud beyond HMRC and the DWP. It gave many powers solely and specifically to the Minister for the Cabinet Office with regard to tackling fraud and the Public Sector Fraud Authority. How effectively can the powers in this legislation now be deployed? I am surprised to hear that an Order in Council will be sufficient. It is better to get on and just use these powers and not worry about one day’s bad publicity.

[Baroness Twycross (Lab)]

The functions under the Public Authorities (Fraud, Error and Recovery) Act will still be able to be used. They will be appropriately transferred, as I said to the noble Baroness, to a relevant DWP Minister and they will be able to be exercised in the way that the Act intended. In addition, the Public Authorities Fraud Investigation and Enforcement Service, which was established as a result of the Act, will continue to legally pursue cases of fraud against government while the transfer takes place.