New guidance has been issued to law enforcement and the courts regarding the calculation and payment of confiscation orders, following the introduction of the Crime and Policing Act 2026. Circular 006/2026, published by the Home Office, details the updated procedures under Part 2 of the Proceeds of Crime Act (POCA), signalling a significant overhaul of how criminal assets are identified, assessed, and ultimately seized by the state.
The reforms, which came into effect with the Crime and Policing Act 2026, are designed to streamline the confiscation process and ensure that convicted criminals are stripped of their illicit wealth more effectively. The previous regime, while robust in principle, had faced criticism for its complexity and the time it often took to secure and enforce confiscation orders. The Government's intention is to close loopholes and improve the recovery rate of funds derived from criminal activities, such as drug trafficking, fraud, and organised crime.
Under the revised framework, law enforcement agencies are expected to have greater clarity and enhanced powers to identify and freeze assets earlier in the investigative process. The new guidance provides detailed instructions on how courts should determine the 'amount to be paid' under a confiscation order, taking into account a broader range of assets and financial benefits obtained through criminal conduct. This includes not only direct proceeds but also any lifestyle benefits derived from illicit activities.
A spokesperson for the Home Office stated that the changes represent a firm commitment to ensuring that 'crime does not pay'. They emphasised that the reforms are crucial for undermining the financial foundations of organised crime groups and deterring future criminal behaviour. The new circular is intended to provide consistency across all jurisdictions in England and Wales, ensuring a uniform approach to asset recovery.
The Opposition has broadly welcomed the principle of strengthening asset recovery, though some voices within the Labour Party have called for increased resources for enforcement agencies to fully implement the new measures. A Shadow Home Office Minister commented, 'While we support efforts to confiscate criminal gains, the true test will be whether the police and National Crime Agency are given the funding and personnel necessary to make these new powers truly effective on the ground.'