Though officers breaching the code will not face prosecution, the code will be admissable in any civil or criminal proceedings.
Baroness Hollis said the government was in continuing negotiations with local government about the content of the code.
The code, which is to be revised regularly, is now in draft and will be amended before the Social Security Fraud Bill is scrutinised by the House of Commons, she said.
'It is a code which is primarily aimed at authorising officers. It is designed to instruct them on how they must use the powers. But we want it to be intelligible and legible,' she added.