Public Authorities (Fraud, Error and Recovery) Bill

Baroness Finn Excerpts

Committee stage
Wednesday 18th June 2025 Grand Committee

Moved by

[Baroness Finn]

99A: Clause 88, page 54, leave out lines 5 to 7
Member’s explanatory statement
This amendment would ensure that the Secretary of State did not have the power to direct the independent person to review only certain timeframes.

[Baroness Finn (Con)]

My Lords, Amendments 99A to 99C have been tabled, as ever, in the spirit of constructive scrutiny and with the aim of strengthening one of the more significant accountability provisions in the Bill: the independent review process set out in Clause 88.

These amendments are modest, reasonable and necessary. They are not designed to undermine the intention of Clause 88 but quite the opposite: to give that clause the clarity, independence and rigour that an effective review mechanism surely must demand. Fundamentally, they seek to correct the text in the Bill as drafted, as this would not provide for a proper independent review process of the exercise of powers under this part of the Bill. As we have been clear throughout these days in Committee, having a proper, full and independent review mechanism is an essential requirement to balance the powers granted.

Let me begin with Amendment 99A. As currently drafted, new Section 109J, to be inserted by Clause 88, allows the Secretary of State to direct the independent person to review only certain timeframes, saying in subsection (1):

“The Secretary of State may give the independent person appointed … directions as to the period to be covered by each review under section 109I”.


This, in our view, strikes at the heart of the independence that the clause is meant to enshrine.

If the Secretary of State can determine the scope of the review in such a narrow and discretionary fashion, deciding what is in and what is out, we risk reducing the entire review process to something partial and predetermined. An independent reviewer must have the freedom to examine the full timeline of events, decisions and outcomes as they see fit, not just the periods that a Minister deems relevant. This amendment would remove the power for the Secretary of State to constrain that scope. It would ensure that the independent person can review what needs reviewing, not merely what it is convenient to review.

Further to this, Amendment 99B addresses another area in which we believe the clause falls short of its intended purpose. As present, new Section 109J(3) states:

“The Secretary of State may disclose information to the independent person”.


We do not think this is adequate. For a review to be meaningful, the reviewer must be empowered to access all relevant material. It cannot be left to the Minister to determine what relevant information may or may not be disclosed to the independent person for review. By replacing “may” with “must”, this amendment would impose a basic but essential duty for the Government to co-operate with their own independent review mechanism. This should not be controversial. If the review is to be credible both in substance and perception, the provision of relevant documents, data and records must be a legal obligation, not a voluntary gesture. Our amendment would ensure that the independent reviewer could operate with true independence and without the bias that the discretionary drafting currently in the Bill implies.

We must appreciate that if the Secretary of State can direct the scope and scale of these independent reviews, they cannot truly be called independent. As noble Lords across the Committee will know, the outcome of such a process is only as good as the information that is put into it. I am sure that this Minister would not allow biased information or timeframes or seek to direct the independent reviewer. But, as noble Lords have previously made clear in Committee, we must legislate for the future and future Ministers. This cannot be done on the basis of guarantees alone. I trust the Minister implicitly, but I do not know—indeed, none of us in this Committee knows—that we could always say the same about her successors. It is important that we ensure that this independent review process is independent from day one and there is no risk of it becoming a rubber-stamping body used to sign off favourable reviews on the back of limited information and narrow timeframes.

Finally, Amendment 99C would compel the appointment of independent persons to carry out reviews in England, Wales and Scotland. The Bill in its current form allows the Secretary of State to do so but does not require it. We think that is a mistake. Public sector fraud is not a phenomenon confined to one part of the United Kingdom. If we are serious about building a coherent and credible national response, it follows that there must be consistent independent scrutiny across all three nations. Leaving this to ministerial discretion opens the door to uneven practice and potential political selectivity. By making the appointment of independent reviewers mandatory across the nations, we would create a consistent framework for accountability —one that reflects the devolved landscape while still holding the centre to account.

Taken together, these three amendments seek to reinforce what I believe the Government want to achieve: an independent, well-informed and effective review mechanism. They would ensure that reviews are not unduly limited, that reviewers are not kept in the dark and that all parts of the UK are covered by the same standards of transparency. In short, these amendments would close the gaps that could otherwise turn an accountability provision into an optional exercise. I hope the Minister will reflect carefully on their intent and consider how they might help deliver a stronger, fairer and more credible oversight process. I beg to move.

[Lord Vaux of Harrowden (CB)]

My Lords, I rise briefly to add my support to the first two amendments in this group. While I agree with removing the discretion of the Secretary of State, Amendment 99A does not say what the period of the review should be. I suggest that it should be the same as the period of the review for the eligibility verification notices, which is annual, and that that is what should be in the Bill. It would be useful to hear from the Minister what the Government are proposing in that respect.

--- Later in debate ---

[Baroness Sherlock (Lab)]

My Lords, I am grateful for the contributions to this short debate. I hope that I can answer the questions that have been raised.

The first and most important piece of information is to remind the Committee that in the Commons my honourable friend the Minister for Transformation made it clear that His Majesty’s Inspectorate of Constabulary and Fire and Rescue Services will be commissioned to inspect the DWP’s criminal investigation powers for England and Wales and HMICS for Scotland. I hope that that is helpful. I can reassure the noble Baroness, Lady Finn, that the reason why we chose HMIC is that for more than 160 years it has been carrying out independent scrutiny of law enforcement in England and Wales, including the police. There is no danger whatever that it will be any kind of box-ticking exercise, if HMIC is doing it. I am sure that she can be reassured on that front.

I hope that that shows the level of commitment that we have to the level of scrutiny. If we want to do it properly, HMIC is the body to scrutinise powers of this seriousness. But we have worked closely with HMICFRS and HMICS. We intend to operate in the same way as other law enforcement agencies that are subject to inspections by those bodies. What will happen is that, prior to each inspection, the DWP and the inspectorate body will mutually agree the period that the inspection will cover. That is to make sure that the inspection can cover all necessary activity that has been undertaken, which is a common way of operating. We have no reason to believe that it will not operate well in this case.

We understand that sharing information is essential and will obviously not seek to misrepresent or hold back any relevant information. The legislation as drafted allows us to share all relevant information. But it is essential that the Secretary of State retains discretion—for example, being able to choose not to provide information that may be particularly sensitive and where sharing it could have a detrimental impact, such as on the outcome of an active case. The DWP will fully support and co-operate with the inspection bodies and its reports will make clear if we did not do that. But we want to do so, to make sure that we can deliver on these powers to the right standard.

I am grateful to the noble Lord, Lord Vaux, for answering one question for me. There will indeed be inspectorates. HMICFRS will cover England and Wales and HMIC will cover Scotland to enable us to have a different reviewer in the two places. I hope that, given those reassurances, the noble Baroness, Lady Finn, will not press her amendments.

[Baroness Finn (Con)]

My Lords, I thank the Minister for her reply. As we draw this debate to a close, I return to the fact that these amendments are rooted in the core values of fairness, transparency, independence and accountability. I thank the noble Lords, Lord Vaux and Lord Palmer, for their support, although I know that the noble Lord, Lord Vaux, has not supported Amendment 99C.

The independent review mechanism outlined in Clause 88 should be one of the central safeguards of the Bill. It should ensure that the powers conferred are used proportionately, effectively and in the public interest. As it currently stands, that mechanism risks being weakened by loopholes and discretionary clauses that leave too much power in ministerial hands. I note the response about HMIC, but it still goes to the core that we want this Bill as a standalone and that those loopholes are necessarily closed.

Amendment 99A speaks to a fundamental concern: the right of the Government to define the terms of their own scrutiny. That is not a mark of confident democracy. A review that can only examine certain timeframes selected by the very people being reviewed is not a genuine safeguard; it is a managed narrative. True independence means giving the reviewer the authority to follow the evidence wherever it leads, not wherever the Secretary of State allows.

Amendment 99B is in many ways even more foundational. What is the value of appointing an independent person if that individual can be denied access to the very information that they need to do their job? We cannot have effective oversight if it depends on the good will of the department being examined. I take note of what the noble Lord, Lord Palmer, said. There is a huge difference, as I know well from my own time in government, between the words “may” and “must”. “Must” is a minimal expectation if we are to uphold the principles of openness and integrity. Anything less risks turning independence into theatre and accountability into a form without substance.

Amendment 99C is about consistency. I appreciate that the noble Lord, Lord Vaux, considers it unnecessary. However, if fraud knows no borders between England, Wales and Scotland, neither should scrutiny. We cannot rely only on the Secretary of State’s discretion to decide whether an independent review happens in one nation but not another, because that creates potential confusion and disparity and the appearance, if not the reality, of selective transparency. This is a probing amendment and I appreciate what has been said, which I will pick up on later. What we are aiming for is a duty to appoint independent reviewers across the devolved nations so that trust is not patchy but uniform across the United Kingdom.

When taken together, these amendments must represent a clear and coherent vision that government power must be matched by government accountability. That review must be more than just process. It must be meaningful, showing that we do not fear scrutiny but welcome it, because it is through scrutiny that public trust is earned and retained. The Government have rightly set out to tackle fraud and protect public money, but if the public are to believe that this effort is both rigorous and fair, the checks that we place on those powers must be equally robust. These amendments deliver that balance, not to obstruct but to uphold the values that any confident, responsible Government should share. I urge the Minister to consider the purpose and principle that these amendments seek to preserve. Let us not pass up the opportunity to make this legislation stronger, fairer and more trustworthy. I beg leave to withdraw the amendment.

Amendment 99A withdrawn.