The Public Sector Fraud and Error (Recovery) Regulations 2026

Explanatory note

Reproduced verbatim from the instrument as published on legislation.gov.uk (Crown Copyright, Open Government Licence v3.0). The note is prepared by the responsible government department and is not part of the instrument itself.

These Regulations make provision in relation to direct deduction orders (“DDOs”) under section 17 of the Public Authorities (Fraud, Error and Recovery) Act 2025 (c. 28) (“ the Act ”) and deduction from earnings orders (“DEOs”) under section 39 of the Act.

Part 2 makes provision as to DDOs. Regulation 3 establishes how direct deduction orders and notices, information, notifications and applications relating to direct deduction orders are to be given. Regulations 4 to 6 establish how representations, applications for review and applications to vary DDOs must be made. Regulation 7 provides the amounts to be taken into account in calculating the amounts credited to an account for the purposes of determining the maximum amount of total deductions to be made under a regular direct deduction order in a 28 day period. Regulation 8 and Schedule 1 provide the maximum amounts that may be deducted under a regular direct deduction order from a personal account. Regulations 9 to 11 establish deadlines for banks to comply with notices and other obligations under the Act and create obligations to notify the Minister in the event of non-compliance. Regulations 12 to 16 make further provision as to effecting direct deduction orders including the payment to the Minister of amounts deducted, the deduction of amounts to account for administrative costs and the priority of direct deduction orders with third party debt orders and regular deduction orders under the Child Support Act 1991.

Part 3 makes provision as to DEOs. Regulation 17 defines “earnings” for the purpose of deduction from earnings orders. Regulation 18 and Schedule 2 provides the maximum amounts that may be deducted under a deduction from earnings order from an individual’s net earnings.

Part 4 requires the Minister for the Cabinet Office to review the operation and effect of these Regulations and publish a report within five years after they come into force and within every five years after that.

A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.