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Full details as DWP can now take money directly from bank accounts under new powers

The Public Authorities Act 2025 is now law, allowing the Department for Work and Pensions to issue recovery notices and instruct banks to transfer funds without court proceedings.
The Department for Work and Pensions says benefit fraud and error cost £9.5 billion in 2024–25, and forecasts a reduction to 2.8% by 2028-29, as part of wider savings plans.
Ministers describe the process as identifying confirmed debt, assessing affordability, issuing a formal recovery notice, then instructing banks and financial institutions to transfer funds under statutory safeguards.
Most claimants who engage will be unaffected, but those who ignore repayment requests may have money taken without court action, and Sir Geoffrey Clifton‑Brown and the Public Accounts Committee warned of risks and called for safeguards.
The DWP forecasts an ambitious reduction in fraud and error levels to 2.8% by 2028-29, while public debate continued into late January, including January 29, 2026 social media coverage.

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