#2026/601UK starts new social security debt recovery powers
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
This regulation brings key parts of the Public Authorities (Fraud, Error and Recovery) Act 2025 into force. From 24 June 2026, the government can use new recovery tools for social security debts, including direct deductions from bank accounts and possible driving disqualification for people who owe recoverable debts. It mainly affects people with social security debts, the Department for Work and Pensions, banks, and compliance teams handling public-sector debt recovery. A separate rule allowing recovery of costs starts on 26 October 2026.
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Key Changes
- Starts new social security debt recovery powers from 24 June 2026
- Allows recovery directly from bank accounts through direct deduction orders
- Brings driving disqualification powers into force for certain unpaid social security debts
Obligations
What this law requires
Department for Work and Pensions and relevant public authorities must apply the Act’s recovery and enforcement mechanisms, recovery from bank accounts, driving disqualification provisions, code of practice, further recovery provisions, Scottish Ministers’ powers, and related Schedules 5 and 6 as in force from 24 June 2026, where not already in force.
Banks and account providers must be prepared for the commencement of statutory mechanisms allowing recovery of social security debt directly from a liable person’s bank account from 24 June 2026.
Department for Work and Pensions and relevant recovery bodies must apply the Act’s recovery of costs provision once section 99 comes into force.