The Department for Work and Pensions (DWP) has initiated a consultation process on three new codes of practice, designed to underpin its operations under the Public Authorities (Fraud, Error and Recovery) Act. These codes, once finalised, will dictate how the DWP approaches the critical areas of verifying claimant eligibility, gathering information pertinent to claims, and recovering debts owed to the department within the welfare system.
The consultation focuses specifically on the Eligibility Verification Measure Code of Practice, the Debt Recovery Code of Practice, and the Information Gathering Code of Practice. These documents outline the proposed procedures and standards that DWP staff will be required to follow when exercising new powers granted by the Act. The overarching aim of these measures is to bolster the DWP's capacity to identify and address instances of fraud and error, thereby protecting public funds and ensuring the integrity of the benefits system.
The Public Authorities (Fraud, Error and Recovery) Act, which received Royal Assent in 2022, provides government departments with enhanced capabilities to detect and recover fraudulent payments and overpayments. The DWP's codes of practice are crucial in translating the broad legislative powers into detailed, operational guidelines, ensuring that these powers are exercised fairly, transparently, and in accordance with legal obligations.
For instance, the Eligibility Verification Measure Code is expected to detail how the DWP will confirm that individuals meet the criteria for benefits, potentially including new data-matching techniques. The Information Gathering Code will set out the parameters for accessing and using data from various sources to investigate claims, while the Debt Recovery Code will establish the framework for pursuing overpayments and other debts, including the consideration of claimants' circumstances.
The consultation period offers an opportunity for stakeholders, including welfare rights organisations, legal professionals, and members of the public, to scrutinise the proposed codes and provide feedback. This feedback will be considered by the DWP before the final versions of the codes are laid before Parliament. The development of these codes follows a broader government drive to reduce losses from fraud and error across public services, which are estimated to cost billions of pounds annually.
While the government emphasises the need to tackle fraud and error to ensure fairness to taxpayers and legitimate claimants, some organisations have previously voiced concerns regarding the potential impact of expanded DWP powers on claimants' privacy and rights. The consultation is therefore a critical stage for ensuring a balance between effective enforcement and the protection of vulnerable individuals.