Crime and Policing Bill

Lord Clement-Jones Excerpts

Committee stage
Wednesday 7th January 2026 Lords Chamber

[Baroness Morgan of Cotes (Non-Afl)]

My Lords, I will briefly speak to Amendment 358. It is a pleasure to follow the noble Lords, Lord Vaux and Lord Young of Cookham. Because we are going to be discussing this and a later amendment on fraud, I declare my interest as a director of Santander UK.

It was a huge pleasure and privilege to chair the Lords inquiry into online and digital fraud, which reported in 2022, and I would like to think that we had some impact in raising the issues, which are of huge importance to the public. Fraud is one of the crimes that people are most likely to be victims of. I know the Minister knows that because he is the Anti-Fraud Minister in the department.

Noble Lords have already spoken about the importance of this amendment, the need for the law to be kept up to date as the technology develops, and the fact that allowing as much flexibility in legislation as possible to enable that to happen is important. The reason we talked about the “fraud chain” in the report is that, obviously, people encounter fraud in myriad ways. Fraudsters are, as we have heard, incredibly flexible, and entrepreneurial—for all the wrong reasons. Of course, telecoms—people’s smartphones or phones—is where many people will first encounter the fraudster, who will then try, as we heard in our evidence, to get them away from technology and strike up some kind of relationship which unfortunately ends in people often losing life-changing amounts of money.

I do not want to pre-empt the debate on Amendment 367, which I hope we will also reach today, but the question, perhaps now or for later, is whether the Minister is confident that the previous Government’s and this current Government’s ask of the telecoms industry is strong enough given the frequency with which the public encounter fraud via their telephones. I will ask the question now, but I am sure we will come back to it. We are all waiting for the forthcoming fraud strategy from the Government, which we understand is—I hope—close. Can the Minister give us a little precursor of whether that will impose tougher asks and potential penalties on the telecoms companies for the reasons that we have already heard?

[Lord Clement-Jones (LD)]

My Lords, we strongly support Amendment 358 in the names of the noble Lords, Lord Vaux, Lord Young of Cookham and Lord Holmes of Richmond, and the noble Baroness, Lady Morgan of Cotes, who have made the case extremely well today. I pay tribute to the Fraud Act committee chaired by the noble Baroness, Lady Morgan, and I shall quote from it extensively in the next group.

This amendment would rightly ensure that the definition of a specified article included devices capable of using virtual subscriber identity modules, not just physical SIM cards. As we have heard, the criminal landscape evolves rapidly. If we legislate only for plastic SIMs, criminals will simply pivot to readily available virtual SIM technology. By incorporating virtual SIMs into the definition now, we will help to future-proof these provisions and make them genuinely effective against highly scalable, technology-enabled fraud.

Clauses 112 to 117 quite rightly seek to address the serious and growing problem of SIM farms being used at scale to perpetrate fraud and other abuses—it was very interesting to hear the quotes of the noble Lord, Lord Young, from the Select Committee’s report, which demonstrates that the problem has been with us for several years now—but, as drafted, Clause 114 risks being a technological step behind the criminals. As we have heard, it refers to devices capable of using physical SIM cards, but the market is already rapidly moving towards virtual or embedded SIMs. Indeed, I have an iPad in my hand that has a virtual SIM inside it—no physical SIM card at all. If the Bill focuses only on the plastic card and not the underlying functionality, it will leave an obvious loophole that organised criminals will quickly exploit.

The noble Baroness, Lady Morgan, spoke of “entrepreneurial” but not in a good way. We know that fraudsters are highly adaptive. As mobile operators deploy more robust controls on physical SIMs—I suspect not enough for the noble Lord, Lord Vaux—and as handsets and routers increasingly use eSIMs or other virtual identities, those intent on running industrial-scale smishing and scam operations will migrate to those platforms. If we legislate today for yesterday’s technology, we will simply displace the problem from one category of device to another and be back here in a few years’ time having the same debate. I hope the Minister will be able either to accept the amendment or to confirm that the Government will bring forward their own wording—there is always a bit of “not invented here” with these things. Without that assurance, there is a real risk that this part of the Bill will be lacking in force from the day it comes into effect.

[Lord Davies of Gower (Con)]

My Lords, I thank the noble Lord, Lord Vaux of Harrowden, for speaking to this group. On his Amendment 358, I agree that the Government should look to make provisions that account for all forms of SIM cards used in SIM farms. As the noble Lord stated, the current drafting of Clause 114 does not encompass eSIM cards in the devices used for SIM farming. Given the number of mobile phones that now use eSIMs, this really should be amended.

This speaks to the larger issue of defining provisions ahead of legislation coming into force. When changes are being made to the legality of certain products, suppliers and consumers should be made aware well in advance; behaviours will have to change with reform. This is a case of not just courtesy but constitutional propriety. That is the reasoning behind my Amendments 358A and 538A.

Legislating for the criminalisation of specific devices and software related to fraud should not be done on a whim. Individuals should not wake up one day and possess an illegal device or software that was considered legal a day before, with no warning of the coming change. Some notice must be given. Currently, the Bill simply permits Ministers to specify a device whenever they wish. There is no requirement for those regulations to come into force before the new offences of possession and supply come into force. My amendments would ensure, in the interests of fairness and the rule of law, that the new offences could not come into force until at least three months had passed from the making of the regulations defining the articles.

I believe that a period of three months before the possession and supply of certain articles becomes illegal is sufficient for people to change their habits and businesses to change their models. We in this House would be doing the public a disservice if we did not provide them with the necessary time to adapt. I hope the Minister agrees with this reasoning. I hope he will consider the amendment from the noble Lord, Lord Vaux of Harrowden, and, as always, I look forward very much to hearing his reply.

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Moved by

[Lord Clement-Jones]

359: After Clause 117, insert the following new Clause—
“Digital identity theft(1) A person commits an offence of digital identity theft if—(a) the person obtains, or attempts to obtain, personal or sensitive information relating to an individual, including but not limited to passwords, identification numbers, credit card numbers, national insurance numbers, biometric data, or other unique digital identifiers, and(b) the person intends to use this personal or sensitive information to impersonate that individual, or to enable another person to impersonate that individual, with the purpose of carrying out any transaction, activity, or communication in their name without their consent or lawful authority.(2) For the purposes of subsection (1)—(a) “personal or sensitive information” refers to any data, whether digital, physical, or otherwise, that can be used to identify, authenticate, or impersonate an individual;(b) “obtains” includes acquiring, accessing, collecting, or otherwise coming into possession of such information.(3) A person guilty of an offence under this section is liable—(a) on summary conviction in England and Wales, to imprisonment for a term not exceeding 12 months or to a fine, or both;(b) on conviction on indictment in England and Wales, to imprisonment for a term not exceeding five years or to a fine, or both.”Member’s explanatory statement
This amendment creates an offence of digital identity theft.

[Lord Clement-Jones (LD)]

My Lords, my Amendment 359 would create a new offence of digital identity theft. I am very pleased that the noble Lord, Lord Holmes of Richmond, has signed and supports it.

The amendment is deliberately tightly framed. It targets the foundational act that underpins so much modern fraud and serious criminality: the deliberate harvesting of someone else’s personal and sensitive information with the intent to impersonate them and conduct transactions, activities or communications in their name without their knowledge or consent. It is about criminalising the act of stealing and weaponising a digital identity before the fraud or other downstream offending takes place.

As things stand—and I hope the Minister will confirm this and, indeed, that the promised fraud strategy will recognise—the act of identity theft is not recognised in our law as a criminal offence in its own right. The Fraud Act 2006, the Computer Misuse Act 1990, the Data Protection Act 2018 and subsequent data protection Acts all play an important role, but they are concerned primarily with what happens after the identity has been stolen—after the account has been opened, the loan has been taken out or the money has been moved. They address the fraud, the unauthorised access or the misuse of data. What they do not do is grapple squarely with the initial acquisition of personal and sensitive information with the purpose of impersonation.

Indeed, as the House of Lords Fraud Act 2006 and Digital Fraud Committee, chaired by the noble Baroness, Lady Morgan, heard in evidence, identity theft is still formally regarded in much official material as a social rather than a legal concept. That might have been tolerable in a predominantly analogue world, but it is simply not credible in the age of data breaches, credential stuffing, deepfakes and synthetic identities. Treating identity theft as a mere background condition rather than as a legal wrong in itself leaves people’s most intimate identifiers—biometric data, passwords, national insurance numbers and digital credentials—fundamentally underprotected.

The effect in practice is that law enforcement may feel it has limited tools to intervene at an early stage, even where there is clear evidence that large quantities of personal data have been harvested and traded with a view to impersonation. Instead, the system waits for the fraud, money laundering or other downstream crime to crystallise. By then, the victim’s credit record may be shredded, their bank accounts compromised and their reputation damaged. Yet the initial act of stealing their identity remains conceptually elusive.

The scale and nature of digital identity theft make this gap increasingly untenable. We now know that organised criminals and fraudsters operate, in effect, industrial-scale harvesting operations, feeding on the constant stream of data breaches and leaks from both public and private sector systems. Those databases of stolen credentials are then traded, refined and recombined, very often on the dark web, to facilitate mass impersonation and fraud. This activity is not just an adjunct to fraud. It is, as the Fraud Act 2006 and Digital Fraud Committee rightly described it, a “predicate action”—a necessary precursor to a great deal of online financial crime and, in some cases, to other serious and organised criminality, including terrorism financing.

The threat is being turbocharged by new technologies. Large language models enable highly convincing phishing and social engineering communications at scale and with very low cost. Deepfake audio and video systems allow criminals to mimic a person’s voice or image in ways that can be all but indistinguishable from the real thing. When those tools are combined with rich stolen identity data, criminals can construct synthetic identities or impersonate genuine individuals to open bank accounts, obtain credit cards, register mobile phones and pass remote know your customer checks with alarming ease. In that ecosystem, the act of stealing and collating identity data is itself a sophisticated, harmful criminal enterprise, not simply background noise.

The Bill is rightly concerned with modernising a range of policing and crime powers for the digital age. It updates police powers in relation to electronic devices and remotely stored data and seeks to equip the criminal justice system to deal with contemporary threats, yet it does not deal with this most basic of digital harms: the theft of a person’s identity. That is why this amendment would define a clear, free-standing offence of digital identity theft.

The test that the amendment proposes is straight- forward and proportionate. A person would commit the offence if

“the person intends to use this personal or sensitive information to impersonate that individual, or to enable another person to impersonate that individual, with the purpose of carrying out any transaction, activity, or communication in their name without their consent or lawful authority”.

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[Lord Hanson of Flint (Lab)]

I thank the noble Lord, Lord Clement-Jones, for tabling the amendment, which would introduce a bespoke criminal offence of digital identity theft. I know that he has tabled similar amendments—he was persistent on these matters during the Data (Use and Access) Bill. I heard the support from the noble Lords, Lord Holmes of Richmond, Lord Fuller and Lord Blencathra, and note that the noble Lord, Lord Blencathra, put forward a number of caveats to his broad support. These are caveats I share.

The noble Lord, Lord Clement-Jones, asked whether I would read out a number of amendments to previous legislation. I may disappoint him by reaffirming those issues, as he would expect. Although digital identity theft is not a stand-alone offence, there are, as he recognises, several criminal offences already in existence to cover the behaviour targeted by his amendment. The Fraud Act 2006 made it a criminal offence to gain from the use of another person’s fraud. Cases where accounts or databases are hacked into are criminalised under the Computer Misuse Act 1990. I could read him the offences captured in Sections 2 and 6 of the Fraud Act, Sections 1 and 2 of the Computer Misuse Act 1990, and Section 170 of the Data Protection Act 2018. All apply to the online sphere.

My argument, which the noble Lord, Lord Davies of Gower, might have some sympathy with, is that to create a new criminal offence could be unnecessary duplication. The Fraud Act 2006 captures cases where someone uses another person’s identity and there is an equivalent common-law offence in Scotland. The Fraud Act establishes the offence of someone having in their possession or control an article which includes data or programmes in electronic form. The Computer Misuse Act criminalises unauthorised access and Section 170 of the Data Protection Act covers the deliberate or reckless obtaining, disclosing and procuring of personal data.

That is not to downplay the issue that the noble Lord mentioned. It is important and I recognise the concerns he raised. I hope that the Government will act decisively on these matters. We are currently in the process of transitioning from the Action Fraud service to a new, upgraded platform that will provide a better reporting tool for victims, stronger intelligence flows for police forces and enhanced support for victims. We are looking at doing what the noble Lord wants and upskilling police officers. We have completed a full review of police skills and the recommendations are being delivered through updated police training on this important matter. He will know that this Government have made sure that His Majesty’s Inspectorate of Constabulary and Fire & Rescue Services has now updated the strategic police requirement. That will be published this year and will drive forces to upskill their staff on wider police reform on fraud matters. We want to try to upscale and upskill capability, to ensure the police keep pace with the challenges that the noble Lord has rightly identified.

It is important to take on board the points that the noble Lord, Lord Blencathra, mentioned in his supportive critique of the proposals in the amendment. The Home Office has commissioned an independent review into disclosure and fraud offences. Part 1 of the review, which addressed disclosure, has been conducted; part 2, with Jonathan Fisher KC leading for the Government, will examine whether the current fraud offences are fit for purpose, and specifically whether they meet the challenges of investigating and prosecuting fraud, and whether existing penalties remain proportionate. I am awaiting that report, which may cover the areas that the noble Lord has mentioned. It is important that we have proper examination of that, and that is currently ongoing.

[Lord Clement-Jones (LD)]

Without wishing to interrupt the Minister, could he give us an idea of the timescale? Would it be deliriously possibly to see this report before Report?

[Lord Hanson of Flint (Lab)]

I should have tattooed on my forehead the words, “due course”. As ever, the commitment I can give is that it will be produced in due course. Report on the Bill will be some significant time away. We have another five days of Committee, with a gap for recess, and we will have a statutory gap before our consideration on Report after Committee has finished. It is some while away. The noble Lord is very adept at tabling further amendments on Report, should he so wish.

Part 2 of the report is being considered by the Government; we want to examine that and will publish in due course. I expect that, in the very near future, we will be producing the newly updated fraud strategy, which will address the evolving threat of fraud, including the harm caused by identity theft. Before the noble Lord intervenes, I cannot yet give him a date for that either, but I will try to help the Committee by saying that it will be soon. I will bring the fraud strategy to the House in due course, which will potentially cover some of the areas that the noble Lord has mentioned.

There is a lot going on, but there is existing legislation. I anticipate and understand that this is a genuine issue, and I very much welcome the fact that the noble Lord has brought it before us. I hope that on the basis of what I have said, he will—today, at least—withdraw the amendment.

[Lord Clement-Jones (LD)]

My Lords, I thank the Minister and I will respond in a second.

First, I thank the noble Lord, Lord Fuller, for agreeing with the thrust of the amendment, in his words, and the noble Lord, Lord Blencathra, for his in principle support. I entirely accept the points that he made—indeed, if the additions are not there, they should be. Any amendment that is brought back on Report should definitely take heed of the reservations he raised.

For the noble Lord, Lord Davies of Gower, I was anticipating that, in a sense, there might be too much continuity. During the Data (Use and Access) Bill, his colleagues pushed back on the idea of a digital identity theft offence in rather more adamant terms than the Minister has today. I am grateful for his in principle support, with all the reservations that he had.

The noble Lord, Lord Holmes, encapsulated quite a lot of this. As we move into the world of digital ID, having your digital identity stolen is an issue of digital and financial exclusion. It is going to be increasingly important. I was very interested that the noble Lord, Lord Blencathra, dug out the figures on this; the scale of digital identity theft is huge, so the number of people affected by what is effectively financial and digital exclusion is only going to grow.

However, I did take some comfort. There was a glimmer of light coming out of the Home Office, and I am not always used to that. I celebrate that, particularly in view of the fact that a review is taking place that may well report in the near future. Whatever the Minister has stamped on his forehead, I am sure he is impatient to see it, given his specific role as the Fraud Minister.

I agree with the Minister about the need for the police to have specific powers and skills. I welcome what he said about the upgraded platform in terms of understanding the evidence that is going to be under- pinning any move towards creating an offence. I think, almost inevitably, I am going to come back with something more refined on Report in the hope that the Home Office review of current fraud offences will come up with the goods. I live in hope, but often where the Home Office is concerned my hopes are only too frequently dashed. I live in hope, and I beg to withdraw Amendment 359.

Amendment 359 withdrawn.

Moved by

[Lord Clement-Jones]

360: After Clause 117, insert the following new Clause—
“Defences to charges under the Computer Misuse Act 1990(1) The Computer Misuse Act 1990 is amended as follows.(2) In section 1, after subsection (2) insert—“(2A) It is a defence to a charge under subsection (1) to prove that—(a) the person’s actions were necessary for the detection or prevention of crime, or(b) the person’s actions were justified as being in the public interest.”.(3) In section 3, after subsection (5) insert—“(5A) It is a defence to a charge under subsection (1) to prove that—(a) the person’s actions were necessary for the detection or prevention of crime, or(b) the person’s actions were justified as being in the public interest.”.”Member's explanatory statement
This amendment creates defences to charges under the Computer Misuse Act 1990.

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[Lord Clement-Jones (LD)]

My Lords, Amendment 360 seeks to introduce statutory defences to charges under the Computer Misuse Act 1990. I thank the noble Lord, Lord Holmes, again for his support. He has tabled a number of amendments which are companions to this amendment.

The Computer Misuse Act 1990 is widely recognised as outdated. It inadvertently criminalises legitimate and beneficial cyber security research, making the UK a difficult place for cyber experts to operate in. There has been a very vigorous campaign, as I am sure the Minister is aware, the CyberUp campaign, which has made the case very clearly. This anomaly risks undermining our national cyber resilience and the ability of researchers proactively to detect vulnerabilities. This amendment would address this by inserting a statutory defence where unauthorised access was demonstrably necessary for the detection or prevention of crime or carried out in the public interest.

This reform is vital for supporting responsible cyber research and aligning our laws with the needs of the 21st century digital landscape. The CMA was passed in 1990, when cyber security, as we know it today, simply did not exist. At the time, only 0.5% of the UK population regularly used the internet. Critics, including 93% of cyber security professionals surveyed, believe the Act is no longer fit for this century. The current criminal law criminalises unauthorised access irrespective of the good intentions or defensive motivations of the professional.

This has created a perverse situation in which the UK’s cyber defenders are forced to act with one hand tied behind their back. Threat intelligence researchers investigating criminal infrastructure, for instance, are often unable to obtain the explicit consent required under the Act. This has resulted in 80% of surveyed cyber security professionals having worried about breaking the law while investigating cyber threats. This ambiguity and restriction deters a large proportion of the research needed to assess and defend against emerging threats posed by organised criminals and geopolitical actors.

It also limits the UK industry’s capability compared with foreign competitors in countries such as France, Israel and the US, which already offer more permissive legislative regimes. Consequently, the UK cyber industry is held at a competitive disadvantage. This is a clear economic issue, not merely a legal one. Reform of the CMA is essential to securing a robust digital economy. Updating the Act is estimated to unlock up to £2.4 billion in additional annual sector revenue and support the creation of thousands of highly skilled jobs.

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[Lord Hanson of Flint (Lab)]

I say to the noble Lord—and I hope that he takes this in the way in which I respond—that the review commenced in 2021, and it is now 2026. That is a long time for a review, and I would want to ensure that we come to some conclusions on the 1990 Act. However, at this stage, I cannot give him a timescale for the reasons that I have mentioned, about the complexity of this matter. I along with Minister Jarvis have had custody in the Home Office of these issues since July 2024; that is still three years into a review that was commissioned in 2021. I cannot give him a definitive timescale today, but I hope that the House can accept that there is active consideration of these very important matters raised by Members and that the Home Office plans to reform the Act. I hope that I will demonstrate that we are progressing this work at pace, but we need to get it right. Sadly, we are not going to be able to legislate in this Bill, but there is scope to examine issues at a later date. With those reassurances, I hope that the noble Lord will feel able to withdraw his amendment.

[Lord Clement-Jones (LD)]

My Lords, unusually, light is flooding through the windows of the Home Office, and I thank the Minister, but I shall come back to what he had to say. First, I thank the noble Baroness, Lady Neville-Jones, for her support. As the Minister said, her huge experience in this area is valuable, and it is really valuable to have her support in those circumstances.

I also say a big thank you to the noble Lord, Lord Holmes, who thinks these things through in a very eloquent fashion. He more or less reminded me that, back in 1990, the thing that I was using was a dial-up Apple Mac Classic—probably a Classic II—which just shows how long ago the Act was.

[Lord Hanson of Flint (Lab)]

I do not wish to disturb the noble Lord in full flow, but I have just remembered that I missed an important point for the noble Lord, Lord Holmes of Richmond, who requested a meeting with either me or another appropriate Minister. I will take that request away and get back to the noble Lord in due course about a meeting with me or my colleague, Minister Dan Jarvis—or both of us—and anybody the noble Lord wishes to bring with him.

[Lord Clement-Jones (LD)]

That is a very useful offer for those who are involved in or have an interest in pushing this agenda forward. As the noble Baroness, Lady Neville-Jones, also emphasised following the speech from the noble Lord, Lord Holmes, it is not just about being out of date; it is positively harmful. The Home Office appears to be aware of that, despite the stately progress on the review. The fact that the Minister has said there is a recognition of the need to update the Act is very helpful. He said that they have made progress in formulating a limited defence, but I am not quite so sure about that—let us see when it arrives. I am sure that he has engraved across his forehead the phrase “an update at some point”. That is not quite as good as “shortly”, but it is perhaps better than “in due course”. One has to take away the crumbs of comfort that one can.

What I take most comfort from is the fact that we have a cyber security and resilience Bill, which will come to this House after hitting the Commons, where it had its Second Reading yesterday. If the Home Office picks up a bit of pace, there might well be the opportunity to produce a clause there to provide the kind of defence that we are talking about today. I understand that the Minister has a rather Trappist vow at this point, in terms of being limited in what can be said, but we very much hope that he can be let loose at some stage in the future. We look forward to that but, in the meantime, I beg leave to withdraw the amendment.

Amendment 360 withdrawn.

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The level of smartphone thefts and the associated crime wave is a blot on Britain, and especially on London. I urge the Minister to agree to our amendments, which seek to ensure that technology companies use technical measures, such as cloud-based blocking and IMEI-linked device locks, to make the resale of stolen mobile phone devices abroad more difficult, and to bring this into effect six months after Royal Assent. Only this action will materially reduce the incidence of phone thefts in the UK. I beg to move.

[Lord Clement-Jones (LD)]

My Lords, I am pleased to support Amendments 366 and 538, tabled by the noble Lord, Lord Jackson, and introduced so cogently by the noble Baroness, Lady Neville-Rolfe. I thank her for the reference to my honourable friend Martin Wrigley, who helped to identify this particular issue, which addresses the growing problem of mobile phone and device theft, often fuelled by the profitability of reselling these stolen goods overseas.

We are currently facing an epidemic of mobile phone theft, as the noble Baroness said, with reports indicating that phone snatches have increased by as much as 150% in certain areas. Every single day, approximately 200 mobile phones are stolen across the country, with many being destined for a lucrative resale market abroad. These stolen devices remain valuable criminal assets, because, currently, they often can still be accessed or resold even after being reported.

We support Amendment 366 because it seeks to strike at the heart of this criminal profit model. The amendment would ensure that technology companies actively employ technical measures, specifically cloud-based blocking and IMEI-linked device locks, as the noble Baroness described, to deter the resale of stolen mobile phone devices. Without compulsory co-operation from cloud service providers and manufacturers, stolen data and devices will remain valuable criminal assets, even if the physical device is recovered. This is an essential step towards forcing technical solutions from technology companies to counter the incentives for theft.

Amendment 538 would provide the industry with a necessary and reasonable lead-in period, specifying that these cloud service access restrictions will come into force six months after the Act is passed. This would ensure that technology companies have the time required to implement the necessary technical standards and administrative processes.

For too long, the manufacturers and cloud providers have treated device theft as a secondary concern. It is time that they work in a much more customer-friendly manner, in the way that the noble Baroness described, and use their immense technical capabilities to simply turn these devices into mute bricks the moment they are stolen, thereby removing the incentive for the crime altogether. I very much hope that the Minister will accept these common-sense measures to protect our property and safety.

[Lord Hogan-Howe (CB)]

My Lords, I have added my name to the amendment in the name of the noble Lord, Lord Jackson, ably explained by the noble Baroness, Lady Neville-Rolfe. I may cover some of the same ground—I was only grateful that the noble Lord, Lord Clement-Jones, intervened, because people might have forgotten some of the points made, but if I amplify them too much I am sure that somebody will remind me. I was particularly keen to support the amendment because, in the past, I have criticised the police for a lack of enforcement and detection—but of course, they cannot do everything.

We know that organised crime, which I will come to later, is about money; it is just another form of business. Theft is driven by people trying to make a profit. The amendment is all about the commercial business of mobile phone sales—some of it legal but some of it criminal. Apparently, there are about 88 million mobile phones in this country. They can be about £1,000 each, so that is a market of about £88 billion or something of that order. It is a massive market. In 2023, the purchase of these devices totalled £5.8 billion, and there is another £2.5 billion-worth of services that they provide and that we all pay for, from data to the general use of a mobile phone. This, by any measure, is a massive business.

The value of the phones stolen, as the noble Baroness, Lady Neville-Rolfe, mentioned, was about £20 million, with a reinsurance value of £50 million. The number of phones stolen in the UK is about 120,000, with two-thirds of this happening in London. It is a big city, and there are an awful lot of targets for the criminals wandering about. As they leave the Tube, people take their phone out to get a signal, as we all want, and to check on the messages they have not received while they were on the Tube. That is where the criminals spot them, and they then follow them to a place where they relieve them of their phone. I suspect that is one reason why we see so much of this in London. Clearly, the business model works very well here.

These are the crimes that are reported. An awful lot of phones that are stolen are never reported. I have talked to people in this place who have not reported their phone as stolen because there has been a level of embarrassment about the fact that it has happened to them on the street—they have just got another phone. We only know about the bare minimum of the number of phones that have been stolen in the course of a year.

On many occasions, violence is used. Just the ripping of a phone from a hand can lead to somebody trying to hold on to it, and we never know where that contest might end. If somebody ends up on the floor, violence can follow and the physical consequences can be quite severe.

As far as the mobile phone industry is concerned, £20 million is a very small number compared to an £88 billion market. More importantly, as the noble Baroness, Lady Neville-Rolfe, pointed out, the industry benefits, because when you have your phone stolen you go back to get another one. So why would it stop this? There is no financial incentive to actually do anything about it. There might be a moral one, but I am afraid it looks as though the moral incentive is not having an awful lot of effect. Of course, none of the manufacturers or the networks tries to lead in the market by saying that if their phone is stolen then it cannot be used. There is no market incentive for one manufacturer to say that its phone is better because it cannot be stolen, or, alternatively, that if it is stolen then it has no value. There is no effect on the market that is helping to prevent the theft of phones.

It is all to do with organised crime. There are some fancy definitions—one or two people in the Chamber may know of them—of organised crime and what is it all about. It is about money. It is about being organised enough to steal things in such a volume and have somebody to buy them which means that they have been worth stealing in the first place. The market they are involved in is enforced by violence. There is no monopolies commission supervision of this market, whether it be drugs or mobile phones; it is enforced by violence to ensure that they succeed and that other people fail. It is therefore really important that we get this right.

As the noble Baroness, Lady Neville-Rolfe, said, the resale value of a mobile phone that has been stolen is about £300 to £400. The thief does not get £300 to £400, but, by the time it has gone through a few hands, that is the return that they are expecting. To pay everybody out, they need to get £300 to £400 to make sure that it works.

The problem is that 78% of the phones that are stolen are going abroad, as has been said, and we cannot seem to stop them at the border. This is not entirely surprising. Phones are very small items and some 90% of the world’s goods travel by sea, in containers. Without intelligence, the chance of finding mobile phones is very limited. Therefore, we are not able to physically stop the phones leaving the country and going to places such as Algeria and China. At the moment, the police are fighting a losing battle to catch the thieves, who are low down the organised crime chain, and trying to prevent the export of stolen phones. As I said, given the size of a phone, that is quite difficult: they are looking for a very small needle in a very large haystack.