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flag UK lawmakers block government's PSFA restrictions, allowing proactive fraud investigations.

flag The UK House of Lords rejected the government's proposed restrictions on the Public Sector Fraud Authority (PSFA), voting 200 to 194 to allow the body to proactively investigate fraud without waiting for a request from public departments. flag The amendment, backed by 163 Conservatives, 24 crossbenchers, and one Labour peer, aims to strengthen fraud enforcement amid concerns that voluntary cooperation from departments undermines accountability. flag The move follows official data showing £9.5 billion in benefit overpayments, with fraud cited as a major factor. flag The bill also includes powers for the Department for Work and Pensions to recover funds directly from bank accounts, access financial records, and seek driving licence suspensions for welfare debt defaulters. flag A separate amendment to require fraud risk management duties for large public spenders was rejected. flag The revised bill now returns to the House of Commons for further negotiation.

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