Public Authorities (Fraud, Error and Recovery) Bill

David Pinto-Duschinsky Excerpts

Report stage & 3rd reading
Tuesday 29th April 2025 Commons Chamber

[David Pinto-Duschinsky (Hendon) (Lab)]

I rise to speak against amendments 2, 4, 5, 6, 8 and 9, and new clauses 12 and 15.

Fraud in the benefit system affects us all. It costs us as a country almost £1 million an hour. It takes money from the most vulnerable in society and undermines the legitimacy of and public support for our social security system. However, many of the amendments proposed simply do not recognise the vital need for this legislation. Some, such as amendments 2 and 9, would hamstring the Bill by preventing us gathering key information. Others, such as amendments 8, 5 and 6, would limit the effectiveness of the Bill and make its powers more difficult to use. Others, such as amendments 4 and new clauses 12 and 15, would seek to delay its effects.

These amendments, however differently proposed, all suffer from the same pathology: they fail to take fraud seriously. We have heard a number of speeches today from opponents of the Bill, but we are yet to hear from them any serious practical suggestions about how we might tackle fraud. These opponents say that they are concerned to protect the vulnerable, but I say gently that they can offer no proposals on how to prevent the fraud that is stealing from the neediest in our society.

Many Members are coming from a genuine place of concern about how to strike the right balance between protecting the public purse on the one hand and the privacy and rights of claimants on the other. I think the Bill gets the balance right. The powers it provides are proportionate.

[Rebecca Smith]

Will the hon. Member give way?

[David Pinto-Duschinsky]

I have limited time, so I will make progress.

The powers the Bill provides are proportionate, measured and ringed with safeguards. It is a mark of this that, as we heard from the Secretary of State on Second Reading, the Information Commissioner has stated that the Bill as currently drafted has addressed their previously stated concerns.

As well as being proportionate, the powers are necessary to fight the ever-more sophisticated frauds that we are facing. Over the past decade, financial institutions have extensively overhauled their use of technology and data and their approaches to the evolving fraud threat, yet the Government have not. It is illuminating, but perhaps not surprising, that while social security fraud has risen dramatically post covid, fraud volumes and losses in the financial services sector, including credit card fraud, have fallen according to UK Finance. The public sector has paid a steep price for not modernising its anti-fraud approach and failing to adopt industry best practices. It is a gap that this Bill seeks to address.

Most of all, the measures in the Bill are crucial for protecting the vulnerable and safeguarding the legitimacy of the system itself. Our social security system rests on public consent and a belief that money is fairly spent. Fraud and error chips away at this social contract, and it takes money from those who need it most. The public in Hendon and across the country expect us to take action. There is nothing progressive whatsoever about permitting fraud. The only people who benefit are the criminals who exploit our system and those who wish to undermine its role as a cornerstone of a civilised and fair society.

For the sake of the most vulnerable, the taxpayer, fairness and the system itself, I hope the House will join me in supporting the Bill and voting down those amendments.

[Kirsty Blackman (Aberdeen North) (SNP)]

There continue to be many problems with the Bill, but I recognise that the Minister and his team have had extensive conversations with the Scottish Government and made a number of amendments as a result. I welcome the communication between the two Governments and urge the Minister to ensure that the DWP team have extensive conversations in advance of the coming welfare Bill so that it will not need so many Government amendments on Report for how it interacts with Scottish legislation and Scottish systems.

I turn to new clause 1 on carer’s allowance. It would be completely fair to wait until a review has been done—there needs to be a significant look into that—as clawing back money from people without seeing the results of that review would be incredibly problematic. I am therefore happy to support the new clause.

On sickfluencers, I am concerned that although the shadow Minister has tried to draft new clause 21 to exclude people giving advice, it might unintentionally catch some of those people. On that basis, I am not keen to support it as I would be worried about people who offer genuine advice being caught up in that. However, I understand that she attempted to draft it carefully to try to avoid that.

I would be more than happy to support amendment 11 —the SNP will support it—on the suspicion of wrongdoing. I am thinking in particular about the speech made by the right hon. Member for Hayes and Harlington (John McDonnell). I was not going to mention the propensity of former MPs to claim things fraudulently, but in looking at who actually costs the taxpayer significant amounts of money, if the Government were to say, “We know that people who hold millions of pounds in offshore trust funds often dodge tax, so we are going to survey all their bank accounts,” I imagine that there would be some sort of uprising, particularly from some wealthier people we are aware of. But because the Government are saying, “It’s cool; it’s just poor people who will be impacted,” we are all expected to assume that this surveillance is fine. It is not fine; it is an absolute imposition on people’s lives. As many have said, it is treating everybody as though they are fraudsters.

Let us look at the amount of money set to be saved. The Government will save less money annually than the DWP makes in overpayments. Rather than imposing on so many people’s civil liberties, surely cracking down on DWP official error overpayments, which would save more money, would be a better place to begin. It is absolutely daft.

I completely agree with new clause 7, tabled by my colleagues the hon. Member for Brighton Pavilion (Siân Berry), particularly in relation to the reasonable expectation that people could understand that they had been overpaid. A constituent contacted me recently because they had a letter telling them that they are to be migrated to universal credit. They are terrified that they will be deported because the word “migrated” was used in that letter. They do not understand the language used by the DWP. Given that universal credit is so complicated to calculate, so many people could not reasonably have been expected to understand that they were being overpaid. The DWP should take that into account before looking at mass surveillance.