Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, pursuant to the Answer of 12 April 2025 to Question HL6032 on Arm’s Length Bodies, whether the Public Sector Fraud Authority is in the process of being set up.

The government introduced the Public Authorities (Fraud, Error and Recovery) Bill in January, giving us more tools to combat fraud, allowing the government to investigate fraud and recover public money.

The Bill also provides the potential for the Public Sector Fraud Authority (PSFA) to become an arm’s-length statutory body in the future, providing flexibility as to how the government conducts their future counter fraud activities. It was assessed that it would be disproportionate to establish PSFA as one at this current time.

On 6 April, the Chancellor of the Duchy of Lancaster announced a full review of all arm’s length bodies to ensure their existence can be strongly justified against key principles. Any future decision to set up any new ALBs would need to demonstrate alignment with these principles and follow the joint HMT and Cabinet Office approval process for new bodies.