Public Authorities (Fraud, Error and Recovery) Bill

Esther McVey Excerpts

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

[Madam Deputy Speaker (Caroline Nokes)]

Order. It would be helpful if Members tried to confine their speeches to five minutes or so, but I do not propose to introduce a formal time limit yet.

[Esther McVey (Tatton) (Con)]

I wish to speak in support of new clause 11, entitled “Publication of results of pilot schemes”. Make no mistake: this Bill allows for a massive expansion of state powers. It will permit mass financial surveillance of the public. It is a massive overreach by the state, so of course it requires close scrutiny. It requires the publication of those results, and then they must be analysed.

Let me put this in context. Before the covid years, fraud and error across the tax and benefit system were at an all-time low. Then, in 2020, after a state-imposed lockdown—another massive state intervention—unprecedented financial support was set up for millions of people, in a rush of panic, with the full support of Members on both sides of the House. I exclude myself from that, but very few Members opposed the arrangement, and it opened up all sorts of new vulnerabilities in the system.

This support was set up only because of a blanket stay-at-home mandate from the state. It was the state that opened up those fraud vulnerabilities, and it was the state that saw, as a result of those impositions, many millions more people claiming universal credit. Let me give the House the figures. In March 2020, 3 million people were receiving universal credit. By November that year 5.8 million were receiving it, and in January 2025 the number was 7.5 million. Just as the heavy-handed state intervention of lockdown left the public paying a very high price, I am concerned that the Bill, another heavy-handed state intervention, will also leave the public paying a very high price. As Big Brother Watch states, the Bill will introduce

“an unprecedented system of mass financial surveillance; create a second-tier justice system for people on the poverty line; undermine the presumption of innocence; result in serious mistakes risking the freedoms and funds of our country’s elderly, disabled and poor; and turn Britain’s once-fair welfare system into a digital surveillance system.”

I have said it before and I will say it again, lockdown was an experiment inflicted on the British people without their consent and that experiment failed. The Bill will be another such experiment on the British public.

--- Later in debate ---

[Andrew Western]

I am happy to provide that assurance; the hon. Member has stolen my next line. I can say categorically that this is a data push only. No decisions will be taken as a direct result, other than a decision to look further into an account, and potentially initiate a human investigation, if needed.

I want to say a little more about amendments 10 and 12, tabled by my hon. Friend the Member for Poole, which relate to driving licences. He rightly said that welfare recipients may not be able to engage with the Department. For the record, nobody in receipt of benefits or paid through pay-as-you-earn employment will be in scope of the debt recovery powers and therefore of the power to suspend driving licences. Where we do seek to suspend someone’s driving licence, it is worth remembering that this is after we have made at least four attempts to contact them through our debt management team, and at least four further attempts through our debt enforcement team, and we have established their ability to repay by looking at three months’ bank statements. If, when we seek to deduct from that bank account, an individual has removed the funds that we know they have, it is only then that we would look into the possibility of suspending their driving licence. Even then, because this is very much a last resort power, we would seek to agree a repayment plan with them right up until the end. The court would set repayment terms if a driving licence was suspended. It is also worth saying that it is always a suspended decision, subject to compliance with an affordable repayment plan set by the court. As I say, this is a power of last resort. I hope colleagues are reassured to hear of the many steps before we reach that point and, most importantly of all, to hear that the power does not apply to current benefit recipients or anybody paid through PAYE employment.

The right hon. Member for Tatton (Esther McVey) mentioned new clause 11 and the publication of pilot scheme results. I would like to clarify for the House that we are not proposing any further pilot schemes as a result of introducing this legislation. Two pilot schemes have already taken place, so we know that our proposals work. We will be adopting a test-and-learn approach so that we can scale things up. The question of whether this mechanism will yield information that is helpful to us in our inquiries was settled by the previous Government.

[Esther McVey]

Have all the details and all the information from the only pilot schemes that the Government are prepared to run been published in their entirety?

[Andrew Western]

Information of that nature was published prior to Second Reading and is available to Members.

I turn to the amendments and new clauses that attracted the most attention in today’s debate. New clause 1, tabled by the Liberal Democrat spokesperson, the hon. Member for Torbay, pertains to the carer’s allowance. I pay tribute to the millions of unpaid carers across the country. This Government value carers highly, and recognise the vital and valuable contribution they make every day. Like others, I see that in my constituency work, week after week, and I am in awe of all that carers do.

This Government inherited a system in which busy carers, already struggling under a huge weight of responsibility, have been left to repay large sums of overpaid carer’s allowance, sometimes worth thousands of pounds. We need to understand exactly what went wrong, so that we can set out our plan to put this right. That is why we launched an independent review of earnings-related overpayments, and we were delighted that Liz Sayce agreed to lead that review, which will investigate how overpayments of carer’s allowance have occurred, what can best be done to support those who have accrued them, and how to reduce the risk of these problems occurring in future. The independent review is under way and is anticipated to conclude this summer.

But we are not sitting back; we are taking action now. We continue to review and improve our communication with carers to make it as easy as possible for them to tell us when something has changed in their life that could affect their carer’s allowance entitlement. Moreover, this Government introduced the largest ever increase in the earnings limit since carer’s allowance was introduced; the weekly carer’s allowance earnings limit increased to £196 from 7 April this year. It is now pegged permanently to 16 hours.