Fighting Fraud (Fraud Act 2006 and Digital Fraud Committee Report)

Baroness Blake of Leeds Excerpts

Friday 30th June 2023 Lords Chamber

[Baroness Blake of Leeds (Lab)]

My Lords, I express my sincere thanks to the noble Baroness, Lady Morgan, and all her committee—who will from now on be known as the fraud squad. It is evident from my engagement with the committee that its members formed a very strong bond, and a very collaborative report is the result. I commend them for that. I also thank all the organisations and individuals who have sent us briefings to assist our debate.

I welcome the opportunity to be involved in discussing this report, particularly after spending with many other noble Lords in this Chamber many hours and days debating and voting on the Economic Crime and Corporate Transparency Bill, which in large part deals with fraud as the most common type of crime—not only of economic crime but of any crime.

Fraud has become utterly prolific in this country, and I am afraid that the Government simply have not kept pace. Regularly editing it out when presenting crime statistics does not change this fact, and it certainly does not change the experience of Britons who, according to UK Finance, experienced 3 million cases of crime, to the tune of £1.2 billion, just last year. Despite this, as we have heard, only 1% of our police resources are focused on economic crime and only 0.01% of cases are brought to court. Only three convictions for serious fraud were secured last year—a reduction of seven since 2015. The committee makes it clear that our public sector and criminal justice systems are failing to keep pace with fraudsters, and its recommendations make it clear that this must be a priority to reverse the trend, recognising the increasing complexity that we are working with.

I want to stress the emotional impact on the British public as a major consequence of fraud. As the report explains well, fraud involves manipulation and deception. Victims are often blamed for crimes committed against them and feel shame for having fallen for the crime, despite being a clear victim of a criminal act. The often devastating impact can be emotional trauma and psychological harm, also affecting physical health. The noble Baroness, Lady Lane-Fox, gave a very powerful description of the impact.

We have heard today of the sheer breadth and audacity of fraud crimes, playing on the vulnerable. There has been an increase related to the increased use of digital applications since Covid—banking apps are only one aspect of this. There is advertising on our phones, scamming of debit cards at hole-in-the-wall facilities as well as a range of economic crimes so well documented in the report. Reform is vital to ensuring that we protect individuals and businesses across the country, but the enormous scale of fraud in this country, the links between economic crime and violent crime, war, corruption and human trafficking, and exposure to money laundering also threaten the strength of our economy, the stability of our world and the UK’s international reputation.

I am pleased to be able to speak on this report at a time when Members of this House have worked together to send to the Commons six excellent amendments to the Economic Crime and Corporate Transparency Bill, with many more changes made after working productively with Ministers—for example, to strengthen the role of Companies House and the overseas register, to create a new offence of failing to prevent fraud, to stop those who wish to silence journalists and others exposing large-scale economic crime, and extending the cost cap for civil recovery cases. I applaud the Government for the changes that they have made during the passage of the Bill. However, we know that there is a lot more to do. I hope that the Minister will convey the strength of feeling when the debate goes back to the Commons and that our amendments will be protected.

We have to recognise that we live in a different world since the Fraud Act 2006 was passed. It was introduced in the same year as Facebook became open to the general public, having started as a social media platform just for Harvard students. The ability for fraudsters to use technology, the internet and our telecommunications system has driven a huge increase in fraud. According to UK Finance, telecommunications account for 18% of fraud but 44% of the monetary value of losses. Falling for text fraud is as easy as opening a message that tells you that your parcel is due for delivery.

Tackling fraud means tackling online fraud and telecommunications fraud. I welcome the measures in the Online Safety Bill that seek to prevent online fraudulent advertising in that specific context, but wider internet fraud must also be tackled. Telecoms fraud, for which the committee said that the sector had

“allowed blame to be placed elsewhere”,

also needs to be dealt with. The noble Lord, Lord Sandhurst, gave a very clear exposition of that.

The Government’s response makes it clear that they recognise the significant threat that fraud poses to the UK. Given that, why does their strategy aim only to reduce fraud by 10% on 2019 levels by the end of this Parliament? Can the Minister tell me how close we are to that 10% now, and what measurable progress can we expect over the next few months? Looking further into the future, what reduction does he want by 2030 or 2040? Taking fraud seriously as a crime to me means being significantly more ambitious.

There have been some very serious questions for the Minister, but can I add another by asking what progress has been made on replacing Action Fraud? If only 1% of police resources are dedicated to fighting economic crime—and we all agree that that is ridiculously low, given that fraud is the most common crime—does the Minister think that the law enforcement response that he has outlined will be sufficient? As my noble friend Lord Browne has said, the issue of resources will be absolutely critical. As my noble friend Lord Davies said, do we actually need a specialist agency in this space? Do we really believe that the companies are being incentivised to prevent fraud? What other measures does the Minister have to bring into place?

The UK has now achieved a disastrous reputation as a lucrative market to commit fraud. We have heard about the appalling impact on victims My hope is that the Government’s further responses will lead to urgent action and a determination to raise awareness of the extent and impact of fraud on our citizens and our economy that is bringing misery to so many.

Economic Crime and Corporate Transparency Bill

Baroness Blake of Leeds Excerpts

Report stage
Tuesday 27th June 2023 Lords Chamber

[Lord Thomas of Cwmgiedd (CB)]

My Lords, I am grateful to the Minister and I welcome the amendment he has put forward. I want to make three quick points.

First, it is clear that the will of the House is that something should be done quickly. The remedy should be speedy, inexpensive and flexible. This leads to my second point. The right course is to allow the rule committee to develop this, but the rules must be flexible and must allow for the development to be made judicially, rather than prescribed in rules. That, in my experience, has generally been the way forward; we have tried this in relation to other matters and know that it is impossible to lay down too many detailed things in rules. Thirdly, I hope that the Government will make available the necessary resources to the judiciary, so that this can be dealt with by a High Court or other senior judge. Speed, effectiveness and determination will show whether this is a means that will work or whether we will have to resort to that which was suggested by the first amendment that was debated.

[Baroness Blake of Leeds (Lab)]

My Lords, I add the thanks of our side to Ministers and their teams for the access that they have given us.

I will not say much more; we have had a full discussion and response to the concerns that were raised at Second Reading and in Committee. I believe that we are in a much better place than we were, as has been outlined by many of these contributions.

I have a few points to highlight. I honestly believe that providing the courts with powers to strike out SLAPPs would be a huge, ground-breaking step forward. We have to regard what is before us as a positive start. It is also positive that a robust threshold test has been introduced and that the profile of the defendant is not prescribed, which enables it to be used by anyone—journalists, whistleblowers, activists and academics—as we have heard.

We have to acknowledge the problems that other noble Lords have highlighted around the definition of what constitutes a SLAPP and where we will achieve that clarity. The proof will come as we move ahead, but I agree that we need to make sure of this in the rules and know when they will be available for us to consider. Perhaps the Minister can respond to this.

I want to press the Minister on an answer to when the Government expect to extend the use of protections against SLAPPs beyond the definition of economic crime as outlined. That would be very helpful for us all.

In conclusion, while limited, this is a promising framework. As I have said, the Government have committed to expanding the scope, and we all ask for this to be done speedily. I do not want to get into competing quotations from famous rock stars, but there are several we could follow. I hope that

“watch out, you might get what you’re after”,

from Talking Heads, is not one of them.

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[Baroness Bowles of Berkhamsted (LD)]

My Lords, my name is on several amendments relating to failure to prevent fraud, and I support what has been said already and what was said extensively in Grand Committee on both failure to prevent fraud and the identification doctrine. If the noble and learned Lord, Lord Garnier, moves his Amendments 110 and 125A, we on these Benches will support them.

I retabled my amendment on regulatory failure to prevent, which was well supported in Committee. I do not intend to move it but I have tabled it as a reminder that we have not yet covered the enablers, as the noble Lord, Lord Vaux, spoke about. This is probably the best route to do so, with regulators being perhaps best able to understand where actions could or could not have been taken. This recommendation was encompassed within the Fraud Act report.

We have, I suppose, gone a long way, and the Government have gone a long way within the remit covered by the Law Commission, which unfortunately included the harm aspect. As a lot of the crime that has come about through this enabling channel has been since that report was commissioned, this is unfinished business; we will necessarily have to come to this again. For now, we should strengthen the government proposals through Amendments 110 and 125A.

[Baroness Blake of Leeds (Lab)]

My Lords, I start by acknowledging the great progress that has been made on the failure to prevent process through the debates in the House of Commons. There was significant movement there, which we of course welcome.

I say at the outset that if the noble and learned Lord, Lord Garnier, is minded to divide the House on Amendments 110 and 125A, he will have the support of these Benches. There are very good reasons for that, as have been outlined in the debate today. The statistics, particularly the 0.5% figure, are startling. Surely, we all need to take this incredibly seriously if, as the noble Baroness, Lady Morgan, said, we are serious about tackling the wider fraud issues, which seem to be growing daily. The numbers of people we all know personally who are affected by this shows the sheer extent of the problem.

I will make the very strong point that the issue of costs and burdens on SMEs has been overemphasised. If these processes are tightened in the way proposed, those very businesses will themselves be protected by the action taken on other companies. In particular, I completely support the extension to the money laundering provision in Amendment 125A.

We have had a really good debate throughout our proceedings on these measures. It would be so disappointing if, at this final stage, we did not go the full distance we can at this point, recognising, as we know, that more will need to be done in the future. We have the opportunity now and we should seize it.

[Lord Sharpe of Epsom (Con)]

My Lords, I thank all noble Lords for their contributions to today’s debate on corporate criminal liability and for their continued engagement on this subject. These conversations have been robust and constructive and have helped the Government immensely in the development of the clauses —developed, I say to the noble Lord, Lord Vaux, without any reluctance at all.

I turn to Amendments 135 and 125G on senior manager liability, tabled by my noble and learned friend Lord Garnier. As he has noted, senior managers hold a higher level of responsibility than ordinary employees in conducting business because they take important decisions on the corporate policy, strategy and operation of the company. The extension of the identification doctrine to senior management in Amendment 104, which I spoke to previously, recognises this. To reflect the heightened responsibility of a senior manager in the actions of a corporation, powers are available already to prosecutors to hold a senior manager liable where a company conducts an economic crime offence.

Under the fraud, theft and bribery Acts and the money laundering regulations 2017, senior officers, including managers, are liable if they consent to or connive in fraud, theft, bribery or money laundering regulatory breaches. This extends as far as the senior manager knowingly turning a blind eye to offending, extending beyond the usual law on accessory liability for other crimes. If a senior manager is guilty of the offence and liable, they can be proceeded against and punished accordingly, including by imprisonment.

Additionally, in the regulatory space, the senior managers and certification regime is in place to improve good corporate behaviour and compliance in the sectors regulated by the Financial Conduct Authority and Prudential Regulation Authority, placing specific requirements on senior managers to encourage positive corporate behaviour.

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[Lord Agnew of Oulton (Con)]

My Lords, I do not seek to press this amendment. I merely say that the fraud plan, which my noble friend the Minister worked so hard on, has produced a list of some 74 commitments. I certainly am not going to add to the agony of the House and list them; all I ask my noble friend to do is to ensure that there is a mechanism for his department to track the progress of all these commitments. In aggregate, they would entirely change the landscape, but if they are not pursued, we will not move forward.

[Baroness Blake of Leeds (Lab)]

Amendment 128 in the name of my noble friend Lord Coaker has a straightforward, clear ask: within a year of the Bill passing, the Secretary of State must publish a report on economic crime and investigation. It must include the performance of the framework for investigating crime, et cetera, and an assessment of the roles of the Serious Fraud Office in particular. Important elements mentioned in the amendment include the adequate resourcing of staff and the strategy for fees, which we have discussed elsewhere.

[Lord Sharpe of Epsom (Con)]

My Lords, I thank the noble Baroness, Lady Blake, for speaking to the amendment in the name of the noble Lord, Lord Coaker, and my noble friend Lord Agnew of Oulton for his amendment. These amendments seek to add further parliamentary scrutiny on economic crime matters.

However, I have been clear throughout the previous debates on this topic that it is the Government’s view that there is already more than sufficient external scrutiny in the areas outlined by the noble Lords. These amendments are therefore duplicative, and if accepted would lead to agencies and government departments being caught in resource-intensive reporting requirements that would have no real benefit to parliamentarians, detracting from their core roles of tackling economic crime. I have noted what my noble friend has said, and the Government are of course more than committed to doing the things he suggests.

Amendment 128 in the name of the noble Lord, Lord Coaker, would require the Government to issue a report on the performance of agencies and departments in tackling economic crime. I am aware of the strength of his feeling on the resourcing, performance and co-ordination of operational agencies. I hope that the sessions we have facilitated for him with Companies House and the Serious Fraud Office will have gone some way to reassuring him on this.

I can also reassure him and the House that the Government are ensuring that the response to economic crime has the necessary funding. The combination of 2021’s spending review settlement and private sector contributions through the new economic crime levy will provide funding of £400 million over the spending review period. The levy applies to the AML-regulated sector and will fund new or uplifted activity to tackle money laundering, starting from 2023-24.

In addition, a proportion of assets recovered under the Proceeds of Crime Act 2002 are already reinvested in economic crime capability. Under the asset recovery incentivisation scheme—ARIS—receipts paid into the Home Office are split 50:50 between central government and operational partners, based on their relative contribution to delivering receipts. In 2021-22 this resulted in £142 million being redistributed to POCA agencies. That should provide the necessary reassurance on resourcing and funding. Given what I hope to have shown is a significant amount of reporting, external scrutiny and indeed funding and resource, I ask the noble Baroness, on behalf of the noble Lord, Lord Coaker, not to press Amendment 128.

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[Baroness Altmann (Con)]

I do not wish to detain the House long. I congratulate the noble Baroness, Lady Kramer, on her amendment and her Private Member’s Bill trying to bring this matter to the House’s attention. She is absolutely right that it is really important, and I wish that we could put a measure of this nature into the Bill—whether this one exactly or something similar.

It should not be a career-ending decision to try to do the right thing. To try to alert the country to a major issue that may be going on within our corporate sector should not be something that one is frightened of. Sadly, at the moment, that is so.

I also congratulate the APPG on Anti-Corruption and Responsible Tax, which has done brilliant work in helping brief the House on the Bill. Finally, I thank my noble friend the Minister, who I know has tried so hard to make this a better Bill. I thank the noble Baroness, Lady Kramer. I fully support her amendment, but I am sad that it is not going to carry tonight.

[Baroness Blake of Leeds (Lab)]

I add my recognition to the noble Baroness, Lady Kramer, for the extraordinary attention to detail and persistence that she has shown in taking forward this very important issue. I know that the Minister will talk to us about the review that is coming in, but there still remain certain aspects that could be brought in immediately—for example, an expectation that every company at least has a policy on whistleblowing. We do not have to wait for a review to achieve that.

We have heard some extraordinary testimony through the debates on the Bill, and the real heartache and personal cost that have befallen people who have not had a good experience. As the noble Baroness, Lady Altmann, said, too many people wait until their job or career comes to an end before they give any details, if they do at all, on the issues that concern them.

This is an extraordinarily important issue. We need to make sure that the pressure is on. I ask the Minister to give us some reassurance about the review, what will happen when it is concluded, and what the mechanism will be to make sure that its findings are put into practice.

[The Minister of State, Department for Business and Trade (Lord Johnson of Lainston) (Con)]

Before I speak to the amendment in this group, I draw your Lordships’ attention to my interests as set out in the register.

I turn to Amendment 136. I personally thank the noble Baroness, Lady Kramer, for raising the very important matter of whistleblowing. I have been extremely grateful for the time that she spent with me ahead of this debate, and look forward to continuing being an important conduit for her into the Government, trying to seek a good resolution around the noblest of intentions. I am also grateful to my noble friend Lady Altmann and the noble Baroness, Lady Blake, as always, for their useful, contributory, collaborative comments.

This Government recognise how valuable it is that whistleblowers are prepared to shine a light on wrongdoing and believe that they should be able to do so without fear of recriminations. This entire process fits within the spirit of the ECCT Bill. I pay tribute to the courage displayed by individuals who blow the whistle on wrongdoing.

I appreciate that there is real strength of feeling on this topic, but the Government’s position is still that it is premature to make legislative change ahead of the review of the whistleblowing framework, which has been mentioned in this debate. The Government recognise that there are different proposals for an office for the whistleblower, and the roles and functions that such a body could have.

The office risks duplication and confusion within the established whistleblowing framework. It is not necessarily clear how the office would interact with the existing prescribed persons, many of whom have regulatory powers in specific sectors. It may duplicate their role and responsibilities. It is also not clear how the office would interact with the current approach to detriment protection for whistleblowers and the role of the employment tribunal, and how whistleblowers and employers would be affected.

Secondly, there is an issue around the costs associated with establishing and running a body. It is not clear how the body would be funded, and we should think very carefully before committing taxpayers’ money, even though this is clearly a very important cause that deserves significant amounts of attention.

Finally, I would not want the Government to take such a dramatic step before they have fully considered the effectiveness of our existing framework as well. As I am sure noble Lords would agree, it would be premature to make legislative change before the ongoing review of the whistleblowing framework has concluded and the Government have assessed the evidence.

It is worth pointing out that we were one of the first countries to introduce a whistleblowing framework, and our framework is well established. Internationally, we are regarded as a leader in whistleblowing policy and our framework has been used as a model for other jurisdictions, such as Australia and Ireland. The whistle- blowing framework recognises that workers are actually the first line of defence for employers to detect and take action where wrongdoing is taking place or has the potential to do so. Workers who believe that they have been dismissed or otherwise detrimentally treated for making a protected disclosure can make a claim to the employment tribunal, which can award unlimited compensation.

Economic Crime and Corporate Transparency Bill

Baroness Blake of Leeds Excerpts

Committee stage
Thursday 11th May 2023 Grand Committee

[Lord Fox (LD)]

My Lords, I will speak very briefly—I am sure the Minister will be glad to know that. I am intrigued by Amendment 109 because it complicates the process of bringing the Bill into being quite a lot. There are a lot of moving parts set out in Amendments 109 and 110 for the Bill to start to be effective. The simple question is: from start to finish—from Royal Assent to when everything is working and all parts are moving—what is the Government’s estimate as to long it will take to fulfil all the steps set out in these amendments?

[Baroness Blake of Leeds (Lab)]

I too will speak very briefly. I note the comments about consultation with devolved authorities. Given concerns about the extent of consultation in other areas, can the Minister reassure us that it is adequate, and deemed adequate by the devolved authorities? That is a clear theme running through some of the legislation.

We have discussed—we will revisit it, I am sure—the issue of failure to prevent and the specific mention of large organisations. We understand that keeping it to large organisations will not capture a broad enough spectrum of the businesses that we are covering. Having said that, I recognise that this is a tidying-up exercise. With further amendments we might revisit some of the issues at a future stage, but I would be grateful if the Minister could respond to those comments.

[Lord Sharpe of Epsom (Con)]

I thank noble Lords for their brief comments. In answer to the noble Lord, Lord Fox, about when the powers in the Bill will be brought into force, obviously I speak with authority only for the Home Office measures in the Bill. Certain measures in the Bill that are necessary to issue codes of practice will come into force on the day of Royal Assent, as will some of the money laundering reporting measures that we discussed previously in Committee. It is our intention for some of the remaining measures to be brought into force in autumn. This is subject to obtaining Royal Assent before summer.

The operalisation of these powers is a priority for the Government and our law enforcement partners. That is why we have taken steps to provide pre-commencement consultation for a number of measures in the Bill, to facilitate it coming into force as early as practically possible.

Some of the Companies House reforms will require consequential changes, including secondary legislation and guidance. Certain reforms, such as identity verification, will also require system development following Royal Assent. Some changes will be implemented almost immediately but others will take longer. We cannot commit to precise dates at present but work on implementing the measures is already under way at Companies House. Companies House is an executive agency of the Department for Business and Trade and there are various governance mechanisms to hold the agency to account on those reforms.

As I mentioned previously, these amendments are technical. They are designed to ensure that the Bill is effective and to make changes following amendments debated previously in Committee.

Before I wind up, I thank all noble Lords for their participation in the Committee, in particular the Front Benches. It has been a lively, extremely interesting and well-informed Committee. It will certainly improve the Bill over the course of its passage through Parliament. I thank my officials for the constructive spirit in which they have engaged with all interested Peers. From a personal point of view, I also thank them for guiding me through some fairly tricky questions. I hope that noble Lords are satisfied with the amendments.

[Baroness Blake of Leeds (Lab)]

My Lords, I asked—

[Lord Sharpe of Epsom (Con)]

My profuse apologies to the noble Baroness, Lady Blake. I am assured that all discussions have taken place with the devolved Administrations and that they are all content with it.

Economic Crime and Corporate Transparency Bill

Baroness Blake of Leeds Excerpts

Committee stage
Tuesday 9th May 2023 Grand Committee

[Baroness Blake of Leeds (Lab)]

I will add some brief comments. I thank noble Lords for their contributions. I would like to understand whether this is adequate in terms of the opportunity that we now have. We know that if we miss this opportunity now, the risk is that it will not come round again for a long time. As we have heard, the situation is desperate and there have been enormous failings. I ask the Minister who will monitor the success of this and, assuming that the amendment is agreed, whether we will have an opportunity in future to understand whether it is having the desired impact.

The point has been well made: looking at other countries and other collections of companies around the globe that are grappling with this issue, are we missing a trick? Is there more that we could do at this stage? Context is everything. We have heard about the gaps that exist and the fact that too many people are getting away with not fully complying with the sanctions. We as a country need to take that very seriously. I would appreciate the Minister’s response to those questions, for clarification.

[Lord Goldsmith of Richmond Park (Con)]

I thank noble Lords for their contributions to this short exchange. I will start by addressing some of the points raised by the noble Lord, Lord Alton, who, as I have said many times—we seem to find ourselves in the same debates—is an indefatigable champion for human rights and has shone the light so often on abuses in China, Hong Kong and beyond. It is worth putting that on the record again. I am afraid that I cannot tell him what was raised in discussions between the Foreign Secretary, the Prime Minister and representatives of the CCPIT. I do not have that record, but I will try to uncover an answer for him in due course; I know that my colleagues will have taken a note of his question.

The noble Lord and the noble Lord, Lord Fox, are right to point to the scale of this amendment. A new package is not being introduced; that is not what this amendment is about. That is not to say that changes are not required or that no more can be done with the tools that have been assembled by the Government, not least through SAMLA, but this amendment is just a tidying-up exercise; it is about removing ambiguity. It will not answer the calls that we have heard from speakers in this debate, but it is not designed to. We have the tools that we need. As I mentioned, we now have SAMLA and the ability to tailor a specific sanctions regime using secondary legislation. The noble Lord, Lord Alton, is right that we should focus on using those tools to the maximum effect. There are plenty of places, organisations and people who perhaps ought to be on the sharp end of that sanctions regime. I cannot go into detail—I do not think that any Minister can or would—about any potential future sanctions, not least because doing so and highlighting them now would reduce their impact, but we are always looking to update the—

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[Lord Agnew of Oulton (Con)]

My Lords, I support the amendment tabled by the noble Baroness, Lady Kramer. I welcome our new Minister to the hot seat. I will not speak for long because we have heard the main arguments but, for me, as a businessman, whistle- blowing is an extremely cost-effective way of uncovering bad practice at scale. We have so many examples, such as the Post Office Horizon scandal and the Danske Bank laundromat, one of the largest recent financial crimes in Europe, involving some $230 billion of illegal Russian money, which came alive because of whistle- blowing through UK limited partnerships.

We know that the system is not working. Only about 4% of whistleblowers who take cases at the moment end up being successful. They take huge risks, as we heard from the right reverend Prelate. As usual, we are falling behind in the world league of effectiveness. The US National Defense Authorization Act creates a new whistleblowing programme and establishes a private right of action for whistleblowers who have experienced retaliation.

I ask my noble friend the Minister why we are so timid about this. I accept that he is newly in post, but I would like some evaluation of why we are told that a new office for whistleblowers would be expensive. I do not believe that it would be expensive; it would save money because it would create one focal point for all those with legitimate claims to go to, in addition to the money that would be recovered from economic crime. As we also know, we are awash with economic crime, so why not take this simple step towards dealing with it?

[Baroness Blake of Leeds (Lab)]

I add my thanks to everyone who has put so much effort and work into this issue over a significant amount of time. I thank everyone for their contributions, which have given powerful testimony of those who have suffered. We should note the fact that so many noble Lords in this Committee alone personally know people to whom this has happened.

I confirm that we support this amendment and I look forward to the Minister’s comments about the request for creating an office for whistleblowers. As has been said throughout the debate, it is clear that facilitating whistleblowing would go a significant way to tackling economic crime, whether fraud, money laundering or other crimes. I thank the noble Baroness, Lady Kramer, in particular for her comments about the importance of the earliest possible notice of wrong- doing, which is a key point in this discussion.

I emphasise that the stakes remain too high for an informed insider wanting to blow the whistle. This amendment would be a good starting point. I am not convinced that it will solve all the problems, but we need to see some progress. Too many people are suffering and we need to recognise those individuals as well as the impact on the businesses involved. As the noble Baroness, Lady Altmann, said, the sad truth is that too many people wait until they are leaving a company—either moving on to another or, in the case she mentioned, retiring—before finding the courage to stand up.

I understand there is going to be a review, but surely we have an opportunity now, with this Bill, to make some bold change. I thank the charity, Protect, for its briefing under Speak Up, Stop Harm, which has some very important information that we should all consider. To reference the debate that took place in the Commons, there was strong cross-party support, encouraging support and advice for whistleblowers. I am concerned that the government line remains that taking these important steps is too expensive. I really cannot understand that line of argument. Surely, we should regard this as an investment and not a cost. Tom Tugendhat MP promised more discussion on these matters as part of the debate. Can the Minister inform us where this has got to?

We support the creation of an office to give encouragement and support making reports. We want an ability to provide advice and, most particularly, to act on evidence of detriment to whistleblowers where we know that it occurs. The point in the amendment about making an annual report to Parliament is also important. One area on which I think it would be possible to move is to bring forward the requirement for all organisations to have a proper policy in place as a vital and effective route to preventing crime, which would mean that the courts could use evidence of this as good practice.

As I am sure all noble Lords have seen, 65% of callers to Protect’s confidential advice line say that they have suffered for speaking out, which of course is in direct contravention to the Public Interest Disclosure Act and, therefore, as amended, the Employment Rights Act. This is a very serious issue, which should be picked up and dealt with immediately.

On furlough payments, 41% of clients who contacted the advice line who suspected that fraud was taking place were ignored; 90% attempted to raise concerns with their employer before going to the helpline but, unfortunately, many small organisations still have nowhere to go. It is a matter of how these changes could support businesses that want to do the right thing but do not have the wherewithal to do it.

I look forward to the Minister’s responses to all the points that have been made today. Let us treat this issue with the seriousness that it deserves, as it is an important way in which we can help those who have received information that they want to act on. In the spirit of the Bill itself, it is a vital and effective route to preventing crime.

[Lord Browne of Ladyton (Lab)]

I support the amendment and commend the noble Baroness for tabling it, as well as those who support it. I do not intend to go over anything that anybody else has said about whistleblowing, but I agree with them. I am not in any sense an expert on whistleblowing, but I am speaking because I think I have anticipated in two areas what the Government’s response will be. First, I think that we are all conscious that a review of whistleblowing has been instructed. However, I cannot find in any commentary about it or any of the announcements from the Government whether the possibility of that review recommending the setting up of an office of whistleblower is part of its remit. It does not seem to be—and that brings me to the point that I really want to make.

Some of us contributed to the debate on the Private Member’s Bill on the protection of whistleblowing in the name of the noble Baroness, Lady Kramer on 2 December—I think its formal title is the Protection for Whistleblowing Bill—and because Part 2 of that Bill related to the setting up of an office of the whistle- blower, we have had the benefit of the noble Lord, Lord Callanan, telling us what the Government’s position is. I expect to hear that the Government’s position is that the existing framework provides 80 prescribed persons to whom people can legally blow whistles, many of whom are regulators, that the very diversity of that framework does not need this overarching body because it would not be able to deal with the complexity underneath it, and that should a new body have such a function,

“it would require significant staffing resources, with diverse expertise across a range of sectors, to enable it to carry out these functions effectively”.—[Official Report, 2/12/22; col. 2044.]

In other words, it is not necessary.

That can be said, and that framework exists, but to test whether that is right, I ask the Minister in response to tell us just how effective the framework is. What do these existing regulators and others actually do? What does the data show of their effectiveness? How attractive are they to whistleblowers? How many successful processes have there been—how much criminal or other wrong activity has been uncovered by them, say in the last five years or so—and just how effective have those processes been?

I spoke in that debate on 2 December and I spent quite a bit of time looking for that data, but it does not seem to exist anywhere—there does not seem to be any data that shows how successful the existing framework is. Does the Minister have the data on the number of cases that pass through the current regulatory system, as well as the data on the impact of that? If that data shows what I suspect it does—but only from anecdotal evidence because there is no empirical evidence—then this process is ripe for complete restructuring.

For all the reasons shared with your Lordships’ Committee by the noble Baroness, Lady Kramer, so competently and in such an informed way, the obvious restructuring is to follow the success of the United States of America, where the creation of an office for whistleblowing has dramatically improved the effectiveness of whistleblowing to an extraordinary degree.

It seems that the fundamental problem—this is part of the problem we have got ourselves into with economic crime—is that the infrastructure we have in any part, either to prevent, detect or prosecute it, is just not of the scale of what is going on in our country. We need something that concentrates some very special resources in a way that makes whistleblowers comfortable to deal with them, protected by the state when they blow the whistle, and where the information they give is properly acted on so that it has the results that we need. I hope that when, as I expect, the Minister pushes back on this amendment, he will be able to tell us where that is in the existing framework. If it is not there, we need an office for the whistleblower, and when we get it is just a question of time.

This is an opportunity we have now. Most of us in your Lordships’ Committee have experience of just how difficult it is to get opportunities for legislation that makes this sort of fundamental change. We should grasp this one when we have it. If we have to build upon it beyond economic crime later on, so be it, but we should do it now.

Police, Crime, Sentencing and Courts Bill

Baroness Blake of Leeds Excerpts

Lords Hansard - Part 2 & Report stage
Wednesday 8th December 2021 Lords Chamber

[Baroness Blake of Leeds (Lab)]

My Lords, I rise to support the amendment in the name of the noble Lord, Lord Young, to which I am pleased to have added my name; and I would like to take this opportunity to commend him for continuing to pursue the important issues raised and for the clarity in his exposition of the points in front of us. Given the lateness of the hour and how much pressure we know we are under with this Bill, I hope I will not repeat too often some of the points that have been raised already.

In speaking to this amendment, I would like to emphasise that we are aiming to protect some of the most vulnerable children and young people in our communities. I would like to highlight the comments the noble Lord made, knowing of the increased risk to a young person of exploitation and abuse that comes from vulnerability around their housing situation. We know, in the communities where young people are targets of gangs in particular, just how difficult it is to protect them if they are not given the full support from all the agencies that could be involved to help them—and we know that a safe and stable home is a key element in preventing and reducing youth violence.

There surely cannot be anyone in this Chamber who does not want to see an end to the sickening violence that is cutting short the lives of so many young people in the most harrowing of circumstances. The question is, as always: what further steps can we take to prevent such tragedies occurring? For the sake of brevity, I do not want to go over again all the arguments I made at Second Reading, and I will focus my comments on subsections (c) and (d) of the amendment at the end.

I must admit that I find the argument that changes are not necessary because local authorities already have “discretion” to grant priority in the area of rehousing to be far wide of the mark. Unfortunately, we know that local authority interpretation varies and often leaves the onus on immensely vulnerable families to provide evidence at what can be the most traumatic time of their lives. When asked, three in four local authorities have no specific policy governing how they treat people applying for a priority need because of serious violence. In effect, a postcode lottery has been created.

We need to be completely focused on coming up with practical solutions to what I believe are solvable problems. This new clause would ensure that families with members at risk of gang violence are given the support they need, rather than placing it on a legislative footing. This amendment seeks to update the guidance issued by the Government to ensure that all agencies are adequately protecting those at risk of serious violence—in effect, ensuring that all agencies are working together to protect those at risk and that, in this particular case, housing providers are automatically included. There are areas in the country where that relationship exists, and the results speak for themselves.

This new clause seeks to specify in law what the Government say is often happening anyway. Instead of people at risk of serious violence being forced to gather extensive evidence and demonstrate unique vulnerability—something not easily done when you are under threat or in a crisis—this would make the process automatic, as we rightly recognise should be the case for those threatened by domestic abuse.

Subsections (c) and (d) would ensure that housing providers are included in any collaboration around the reduction of serious violence. The Police, Crime, Sentencing and Courts Bill sets out the Government’s ambition to reduce violent crime and address the root causes of serious violence across England and Wales, by making sure that public bodies work together to stop serious violence. However, at present the Bill does not include housing as a partner agency.

The new collaboration duties can play an important role. Given the role which housing often plays in serious violence, whether because of the location of specific threats or criminal activity around particular locations, it is vital that these providers are not locked out of discussions because they are not specified in legislation. By ensuring the guidance specifically includes them, the Government can guarantee that the all the expertise of this sector will not be ignored.

I conclude by repeating the comments of the noble Lord, Lord Young, on bringing in the costs situation. This is about young people’s lives. I hope the Minister can provide further clarity and more progress, as the noble Lord, Lord Young, asked for.

[Lord Paddick (LD)]

My Lords, we support this amendment. As I said in Committee, it is not just victims of domestic violence that need help and support from housing authorities to escape serious violence; young people groomed and exploited by criminal gangs, for example, also need and deserve to be urgently rehoused in certain circumstances. The police need to provide information to housing authorities where they believe that someone is being coerced into criminal activity, where they are being threatened with serious violence if they do not comply, and where the police believe that taking the person out of that scenario by rehousing them can reduce the risk of serious violence. Many of the young people involved in county lines drug dealing have been groomed into criminality and been the victims of child criminal exploitation. They and their families are often terrorised by those higher up the drug-dealing network. In this sort of scenario, the police need to work with social housing agencies to provide a route out of serious violence. We support the amendment.

Police, Crime, Sentencing and Courts Bill

Baroness Blake of Leeds Excerpts

Committee stage
Wednesday 24th November 2021 Lords Chamber

Moved by

[Baroness Blake of Leeds]

292H: After Clause 170, insert the following new Clause—
“Offences under the Protection from Eviction Act 1977
(1) Where a local authority is investigating an offence under the Protection from Eviction Act 1977, the police must cooperate with the relevant local authority and provide relevant information to it. (2) Local authorities must review such information that they have received every year.”Member’s explanatory statement
This amendment would support procedure for dealing with illegal evictions.

[Baroness Blake of Leeds (Lab)]

My Lords, this amendment would improve enforcement against illegal eviction. It would provide for stronger partnership between the police and local authorities to combat this serious crime, requiring co-operation and the sharing of relevant information by police forces. In almost all cases, an eviction is legal only if it is performed by court-appointed bailiffs. Anything else is an unlawful eviction, and renters have been protected from these since 1977 under the Protection from Eviction Act. A landlord may seek to deprive a renter of their home through harassment, changing the locks, cutting off electricity or other utilities, and other tactics that circumvent the legal system. This is a criminal offence, with penalties including up to two years in prison. Although those protections have been in place for years, in reality tenants are far too often left unprotected. In effect, there is a failure to enforce the law. In 2019-20, local authorities across England reported 1,040 cases of homelessness caused by illegal eviction, yet there were only 30 prosecutions of offences under the Protection from Eviction Act.

We have to ask what is behind that exceptionally low prosecution rate. The impact of cuts to local authority budgets has meant that many local authorities do not have tenancy relations officers who are trained in this area of law. More crucially to today’s debate, this issue of training also applies to police forces, with significant problems arising because forces lack officers and call handlers who are fully trained to respond to such incidents. Where the police do not recognise the criminality of these tactics on the part of landlords, it leads to underreporting of incidents and to those reported being routinely classed not as a criminal offence but as civil matters or breaches of the peace.

Although London Councils reported 130 incidents of homelessness caused by illegal eviction in 2019-20, the Metropolitan Police recorded only a 10th of that number of offences. In addition, in recent evidence to a Senedd committee, Shelter Cymru explained that it had encountered police assisting illegal evictions of tenants from their homes.

Amendment 292H is a small step which builds on the principle of partnership between local authorities and the police, strengthening their ability to prevent illegal evictions, prosecute offenders and ultimately deter landlords from using such tactics. It would require the police to provide local authorities with the information they need to investigate suspected offences and, as part of that, to increase police forces’ awareness of the offence. As part of a much-needed package, these changes must also inform police training programmes to ensure that illegal evictions are recognised and responded to.

The key questions for the Minister are: what are the Government doing to improve the dismal prosecution rate of this offence and what is being done to find and replicate good practice by police forces on this issue? For example, South Yorkshire Police routinely provides Sheffield council with incident logs to help support eviction cases.

The process of being evicted is most likely to be a traumatic experience when done legally. Being evicted illegally, often with nowhere to go and with one’s belongings dumped on the street, can be devastating. Renters should know that, when they reach out for help, police and local authorities will both recognise and be able to provide support against illegal activity. Failure to do so erodes trust and paves the way for increasingly serious problems, including homelessness.

I look forward to hearing from my noble friends Lord Hunt and Lady Armstrong on their important amendment in this group, which addresses protecting children both from violence in their own home and from exploitation outside it. Since the delay from the other evening, there are two additional amendments in the group, Amendments 320 and 328. I look forward to hearing the contributions on those. I beg to move.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I want to speak to my Amendment 292J. This is a pretty heroic group of amendments in a bid to assist the Committee.

There is a connection between the amendment in the name of my noble friend Lady Blake and mine, because her amendment is about encouraging collaboration between the police and local authorities. I too want to see such collaboration. I want to add to that the NHS and other local bodies and, essentially, give a huge boost to support for services for vulnerable children. If we were able to do that, it would have a massive impact on the lives of those vulnerable young children but also ensure that far fewer of them went through our criminal justice system in later life, hence my justification for bringing this amendment to your Lordships today.

I am very much relying on the recently published report of the Public Services Select Committee. I am delighted that my noble friend Lady Armstrong, who excellently chairs the committee, is with me today, and I pay tribute to the members, some of whom will make a brief intervention in this debate, and the staff for their excellent work and the report.

The number of vulnerable children was increasing before Covid hit us, but, since March 2020, the crisis has accelerated. More than 1 million children are now growing up with reduced life chances, and too many end up in our criminal justice system. Despite this, the Government have not yet recognised the need for a child vulnerability strategy. Unfortunately, the results of not having one are readily evident. Our inquiry showed a lack of co-ordination on the part of central government and national regulators, which has undermined the ability of local services to work together to intervene early and share information to keep vulnerable children safe and improve their lives.

This poor national co-ordination means that many children fall through the gaps. In 2019, the Children’s Commissioner warned that more than 800,000 vulnerable children were completely invisible to services and receiving no support. We think this unmet need is likely to have grown during the pandemic. The Select Committee surveyed more than 200 professionals working with children and families and they reported increases of well over 50% during the past 18 months in the number of children and families requesting help with parental mental ill-health or reporting domestic violence and addiction problems in their home.

The problem is that public services are just too late to intervene before trouble comes. In our most deprived communities, too many children go into care and have poor health and employment outcomes. They are excluded from school or end up in prison.

--- Later in debate ---

[Baroness Williams of Trafford (Con)]

As for what is wrong with Amendment 320, I explicitly said to the noble Lord, Lord Best, that the Government agree that the time has come to consider the Vagrancy Act. There is an opportunity to speak to the appropriate Minister before Report to answer some of the questions that have been asked this afternoon. I do not know the answer to the second question, but I will write.

[Baroness Blake of Leeds (Lab)]

My Lords, I pay tribute to the contributions that we have heard this afternoon. They have been incredibly thoughtful and based on evidence. On my Amendment 292H, we have heard many examples supporting the words that I used: there is evidence out there of what works, in the same way that there is evidence of what does not work. This is a real opportunity to get to grips with this issue for the sake of the victims of eviction and their families. I assure the Minister that everyone who has access to evidence will be extremely happy to supply it, with the expectation that it will be considered as we make further progress with this Bill. This is a real opportunity to get things right.

I thought that I was going back a long way, to 1997, not back 200 years, but it clearly is not good enough that, where there are powers, they are not being used. My noble friend Lady Chakrabarti put it well: there must be an express duty to focus minds. It is not enough for us to say that in certain parts of the country this is being done. I can attest from my time as leader of Leeds City Council that there was incredible progress in this area and a real expectation that everyone would come to the table. Not sharing data was never an excuse. It was expected and supported by all the partners. It can be done everywhere but it is not being done everywhere. The resources are not there within the police or local authorities—they are diminishing—to ensure that enforcement is seen through. We are talking about innocent victims who suffer from the lack of enforcement. I made the point that all we are asking for is a simple change, through the amendment, that would bring to an end so much misery for people that does not need to happen.

Police, Crime, Sentencing and Courts Bill

Baroness Blake of Leeds Excerpts

Lords Hansard - part one & Committee stage
Monday 25th October 2021 Lords Chamber

[Lord Young of Cookham (Con)]

My Lords, this amendment is grouped with a number of other amendments giving priority for housing for those at risk. As I said at Second Reading, I very much welcome this Bill, particularly Part 2. I gave notice then that I would be tabling some housing-related amendments to make the Bill even better. I am grateful to Stella Creasy in another place, who has championed the cause of young people at risk and whose office has given me some very helping briefings.

The noble Baroness, Lady Blake, and I are job-sharing on this group. She will speak to Amendment 51, the principal amendment. In a nutshell, it seeks to specify in law what the Government say is happening anyway and should indeed be happening if best practice is to become universal in this highly sensitive area of gang violence, child exploitation and abuse.

Basically, the amendment would put children at risk in the same category for priority housing as families fleeing domestic violence—a measure introduced in the Bill as a result of pressure from, among others, my noble friend Lady Bertin. It would ensure that, instead of being forced to gather extensive evidence and demonstrate unique vulnerability—not easy if your life is under threat—such people were given priority for urgent moves. This would be automatic.

The noble Baroness, Lady Blake, will develop the case. I will confine my brief remarks to the other amendments in this group. Part 2 of the Bill outlines duties to collaborate to prevent serious violence. These amendments would ensure that housing authorities and registered social landlords were included in this new duty, and that there is timely information sharing between the police and housing authorities for the purpose of preventing serious violence. Any effective multiagency response must include housing; including housing in the Bill will support a comprehensive public health approach to tackling and preventing serious youth violence. Education, prison and youth custody authorities are listed in this part of the Bill but housing is not, despite the Explanatory Notes on this section of the Bill saying this on page 13:

“The Strategy explained that the Government’s approach was not solely focused on law enforcement, but depended on partnerships across a number of sectors such as education, health, social services, housing, youth services and victim services.”


These amendments complement those tabled by the noble Lord, Lord Paddick, and others involving the NHS and children’s social care, which we will come to in a moment.

Amendments 26, 29, 31, 38 to 40 and 44 would amend Clauses 7, 8 and 9. They would require the strategy for a local government area, as well as the related powers to collaborate and identify kinds of violence, to include housing authorities so that they are fully consulted as the strategy is drawn up and the actions they need to take are specified. The Minister may argue that, although the Bill specifies who must be involved in the plan—education, prison and youth custody authorities—it does not preclude others from being involved. However, as far as I can see, the Bill does not say that; it implies exclusivity to the three nominated authorities. Without Amendment 38, for example, housing authorities would not have to carry out their role in any plan to reduce violence.

Of the last amendments, Amendment 62 would require housing authorities to disclose relevant information, which they are not required to do at the moment. This is necessary. One serious review case study said that there was

“little evidence of the Housing Service being closely tied into the operational work of the Safeguarding Partnership. As a consequence information that was only known to the Housing Service took time to percolate to the other partners, while the implications of the housing stress under which Child C’s family was placed were not discussed in a multi-agency forum.”

Much of the violence that young people are at risk from is location-based, such as a gang on a particular estate. Housing providers may have an insight into this in a way that others do not. Without Amendment 62, that risk would persist; Amendments 66, 69 and 70 cover the same points.

These amendments would ensure that government policy is effectively delivered by ensuring that housing authorities are included in the Bill as key partners in protecting young people against gang violence. I beg to move.

[Baroness Blake of Leeds (Lab)]

My Lords, I support the amendments in the name of the noble Lord, Lord Young, to which I have added my name. I too pay tribute to Stella Creasy in the other place for her commitment and great foresight, as well as for the support of her team.

As we have heard, the purpose of this chapter is to prevent and reduce serious violence by requiring public authorities to co-operate and develop strategies for tackling this issue. The Government tell us that their aim is to build a public health approach to the reduction of serious violence. That aim is welcome only if we can put in place the right tools to achieve it. What we will keep coming back to throughout today’s debates is that a public health approach works only when it is genuinely focused on prevention and early intervention, and is properly invested in. If not, we will continue simply to treat the symptoms of serious violence, not its causes.

--- Later in debate ---

[Baroness Williams of Trafford (Con)]

I think what I said to the House was that households containing dependent children have a priority need and that a person may be assessed as having priority need if they were considered to be significantly more vulnerable than an ordinary person would be if they became homeless as a result of ceasing to occupy accommodation by reason of violence from another person or threats of violence that are likely to be carried out. In terms of domestic abuse, it is widely acknowledged that domestic abuse crimes are committed inside the home, out of the view of the public, by household members. The changes made to the Domestic Abuse Act to extend priority need to people who are homeless as a result of being a victim of domestic abuse reflected that.

[Baroness Blake of Leeds (Lab)]

The Minister is setting great store by the guidance that is going to come forward. Can I ask her for reassurance that there will be adequate opportunity for those working on the ground to put across the point of view of the reality of dealing with families in some of the most distressing circumstances we could possibly imagine?

[Baroness Williams of Trafford (Con)]

Certainly, I completely concur with the noble Baroness and there will be ample opportunity to look at the draft guidance as well.