Policy paper

Counter Fraud Practitioners: Covid-19 Fraud Civil Claims Note 

Published 2 February 2026

The Public Authorities (Fraud, Error and Recovery) Act (PAFER) became law on 2 December 2025. 

Section 105 extends the time limit for public authorities to bring civil claims in England and Wales to recover losses arising from Covid-19 fraud. It gives public authorities in England and Wales more time to take action to recover fraud against pandemic-related schemes.  

What does the new law do?

• Section 2 of the Limitation Act 1980 sets the time limit for “actions founded on tort” (i.e. claims in the civil courts) at 6 years from the point the cause of action accrued. PAFER changes this for coronavirus fraud cases, extending the time limit to 12 years for these specific claims. 
• Section 32 of the Limitation Act 1980 postpones the start of the claim period in cases of fraud to the point when the fraud was discovered, or could with reasonable diligence have been discovered. The PAFER extension for Covid cases retains this principle. 
• This means the new 12-year period is activated from the date the fraud was discovered by the relevant public authority, or when it could have been discovered through reasonable efforts. 

What does the change apply to?

• This extension applies to civil claims made by any relevant public authority that has suffered a loss due to coronavirus fraud. This means any scheme or relief in connection with coronavirus which was intended to help people or businesses during the pandemic. For the purposes of these provisions “coronavirus” has the meaning as given by section 1(1) of the Coronavirus Act 2020 which “means severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2)” 
• The extension is for claims arising from fraud in connection with coronavirus only. The time limit for recovery of payments made in error is not extended. 

Who is affected by this change? 

• The extension of the civil claims time limit is applicable to public authorities in England and Wales. This includes the devolved Welsh Government. Scottish and Northern Irish devolved authorities are not included in this extension. 
• A ‘relevant public authority’ is defined in Section 105(5) of PAFER which sets out that it is a “(a) a person who exercises functions of a public nature, and (b) is not a devolved Scottish authority” . This definition is deliberately broad and includes government departments, arms length bodies and local authorities, and may also include other delivery mechanisms for public functions, for example outsourced delivery, as far as they are delivering functions of a public nature.  

Why is this change being made?

• The previous 6-year limit means that cases relating to COVID-19 relief schemes, which largely began in March 2020, would start to expire from March 2026. The Government intends this change to allow action to still be taken against coronavirus fraud due to the strong public interest in seeking the recovery of those funds. 

How can this be used?

• Public authorities across England and Wales can use the extended time limit as part of their civil claims processes for the recovery of public funds lost to coronavirus fraud. 
• The 12-year window provides the necessary time for complex investigations and subsequent legal action to proceed. 
• The time limit change has retrospective effect. This means that the time limit extension applies in frauds which occurred before PAFER was enacted.
• Section 105 of PAFER commenced when PAFER was given Royal Assent on 2 December 2025. This means the new time limit is in force now. 
• You should seek legal advice on how this affects any claim your authority wishes to make. 

More details on the Public Authorities (Fraud, Error and Recovery) Act 2025 can be found on the UK Parliament’s website. If you have any other follow up questions please contact psfa@cabinetoffice.gov.uk.