Data Protection and Digital Information Bill

Debate between John Whittingdale and Stephen Timms

Report stage
Wednesday 29th November 2023 Commons Chamber

[Sir John Whittingdale]

I understand the concerns of the hon. Lady. We want to do all that we can to support the bereaved parents of children who have lost their lives. As it stands, the amendment will require Ofcom, following notification from a coroner, to issue information notices to specified providers of online services, requiring them to hold data they may have relating to a deceased child’s use of online services, in circumstances where the coroner suspects the child has taken their own life, which could later be required by a coroner as relevant to an inquest.

We will continue to work with bereaved families and Members of the other place who have raised concerns. During the passage of the Online Safety Act, my noble colleague Lord Parkinson of Whitley Bay made it clear that we are aware of the importance of data preservation to bereaved parents, coroners and others involved in investigations. It is very important that we get this right. I hear what the hon. Lady says and give her an assurance that we will continue to work across Government, with the Ministry of Justice and others, in ensuring that we do so.

The hon. Member for Rhondda made reference to proposed new schedule 1, relating to improving our ability to identify and tackle fraud in the welfare system. I am grateful for the support of the Minister for Disabled People, Health and Work, my hon. Friend the Member for Corby (Tom Pursglove). In 2022-23, the Department for Work and Pensions overpaid £8.3 billion in fraud and error. A major area of loss is the under-declaration of financial assets, which we cannot currently tackle through existing powers. Given the need to address the scale of fraud and error in the welfare system, we need to modernise and strengthen the legal framework, to allow the Department for Work and Pensions to keep pace with change and stand up to future fraud challenges.

As I indicated earlier, the fraud plan, published in 2022, contains a provision outlining the DWP’s intention to bring forward new powers that would boost access to data held by third parties. The amendment will enable the DWP to access data held by third parties at scale where the information signals potential fraud or error. That will allow the DWP to detect fraud and error more proactively and protect taxpayers’ money from falling into the hands of fraudsters.

[Sir Stephen Timms (East Ham) (Lab)]

My reading of the proposed new schedule is that it gives the Department the power to look into the bank accounts of people claiming the state pension. Am I right about that?

[Sir John Whittingdale]

The purpose of the proposed new schedule is narrowly focused. It will ensure that where benefit claimants may also have considerable financial assets, that is flagged with the DWP for further examination, but it does not allow people to go through the contents of people’s bank accounts. It is an alarm system where financial institutions that hold accounts of benefit claimants can match those against financial assets, so where it appears fraud might be taking place, they can refer that to the Department.

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[Sir John Whittingdale]

I am very grateful to my right hon. Friend for his contribution, and I share his principled concern that the powers of the state should be limited to those that are absolutely necessary. Those who are in receipt of benefits funded by the taxpayer have an obligation to meet the terms of those benefits, and this provision is one way of ensuring that they do so. My hon. Friend the Member for Corby has already said that he would be very happy to discuss this matter with my right hon. Friend further, and I am happy to do the same if that is helpful to him.

[Sir Stephen Timms]

Can the Minister give us an example of the circumstances in which the Department would need to look into the bank accounts of people claiming state pensions in order to tackle the fraud problem? Why is the state pension within the scope of this amendment?

[Sir John Whittingdale]

All I can say to the right hon. Gentleman is that the Government have made it clear that there is no intention to focus on claimants of the state pension. That is an undertaking that has been given. I am sure that Ministers from the DWP would be happy to give further evidence to the right hon. Gentleman, who may well wish to look at this further in his Committee.

Finally, I wish to touch on the framework around smart data, which is contained in part 3 of the Bill. The smart data powers will extend the Government’s ability to introduce smart data schemes, building on the success of open banking, which is the UK’s most developed data sharing scheme, with more than 7 million active users. The amendments will support the Government’s ability to meet their commitment, first, to provide open banking with a long-term regulatory framework, and, secondly, to establish an open data scheme for road fuel prices. It will also more generally strengthen the toolkit available to Government to deliver future smart data schemes.

The amendments ensure that the range of data and activities essential to smart data schemes are better captured and more accurately defined. That includes types of financial data and payment activities that are integral to open banking. The amendments, as I say, are complicated and technical and therefore I will not go into further detail.

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[Sir Stephen Timms]

My understanding was that the level of fraud among state pension claims was indeed extremely small. The Minister said earlier that the Government should take powers only where they are absolutely necessary; I think he is now saying that they are not necessary in the case of people claiming a state pension. Is he confident that that bit of this power—to look into the bank account of anybody claiming a state pension—is absolutely necessary?

[Sir John Whittingdale]

What I am saying is that the Government’s intention is to use the power only when there is clear evidence or suggestion that fraud is taking place on a significant scale. The Government simply want to retain the option to amend that should future evidence emerge; that is why the issue has been left open.