Ministers will put fraudsters on notice as new legislation is introduced to Parliament today to beef up powers to claw back cash from Covid crooks and welfare cheats
A counter-fraud squad will be given power to raid the properties of Covid crooks and recover taxpayers’ cash from their bank accounts.
Ministers will put fraudsters on notice as new legislation is introduced to Parliament today to double the time limit for civil claims from six to 12 years. The Cabinet Office’s Public Sector Fraud Authority (PSFA) will be given more powers, which will apply retrospectively, including the ability to raid properties and retrieve money from fraudsters’ bank accounts in the most serious cases.
It comes after the Government appointed a new Covid corruption commissioner last month, who will review the £8.7billion of PPE bought during the pandemic that then had to be written off. He is also expected to look at the Tory government’s decision to abandon attempts to claw back money from deals worth £674million.
READ MORE: Benefit fraudsters will have cash seized from bank accounts under new crackdown
Cabinet Office Minister Georgia Gould said: “During the pandemic, when people and businesses needed government support the most, some people stole public money for their own personal gain.
“This legislation gives the government tough new powers that can be used to investigate and recover money stolen from the public during Covid and doubles the time we have to bring fraudsters to justice.”
The changes will come in the Public Authorities (Fraud, Error & Recovery) Bill, which will also contain measures to combat benefit cheats. Welfare fraudsters could be stripped of their driving licences if they repeatedly fail to reimburse the public and repay their debt.
The Department for Work and Pensions (DWP) will be able to apply to the court to suspend fraudsters from driving, provided the debt is £1,000 or over and frequent requests to repay the debt have been ignored. DWP’s serious organised crime investigators will also be handed powers to apply to a court for search warrants to search premises and seize items such as computers and smartphones as evidence.
Work and Pensions Secretary Liz Kendall said: “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money.”
The Government said there would be safeguarding measures to protect vulnerable people, as well as oversight mechanisms to monitor the use of the tough new powers.
The DWP said the move would save £1.5 billion over the next five years as it faces pressure to make radical cuts to the benefits bill as part of wider efforts to cut public spending.
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