Public Authorities (Fraud, Error and Recovery) Bill

Gill German Excerpts

2nd reading
Monday 3rd February 2025 Commons Chamber

[Gill German (Clwyd North) (Lab)]

This Bill is crucial for delivering on this Government’s manifesto commitment to safeguard taxpayers’ money. As the Secretary of State has rightly stated, we must be

“turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money.”

In Wales alone, the national fraud initiative found £7.1 million of fraud and payment errors in 2022-23, up by £0.6 million since the previous year. Figures such as this show just how much a blight on the economy fraud and error continue to be. I have heard at first hand from constituents about instances of benefit fraud that they are well aware of, such as individuals using past addresses to make claims to which they are not entitled. They know that this is not right, and they expect us to take action. It is also essential that we crack down on organised crime gangs and streamline the process through which DWP investigators can act to bring these serious offenders to justice more swiftly.

I welcome this Government’s crackdown on fraud, because every £1 lost to fraudulent claims is £1 that could be spent on vital public services—services that my constituents in Clwyd North rely on to strengthen our communities and improve lives. However, it is crucial that we make a clear distinction between intentional fraud and accidental individual error. Errors leading to overpayments may be the result not of deliberate wrongdoing, but of the inherent complexity of the social security system itself. Many of my constituents have shared their struggles with the complexity of applying for benefits, and knowing what to apply for and how. This causes significant stress, and it exemplifies the risks of penalising individuals who may simply have been unable to navigate the system, further entrenching the fear of making a mistake. The Bill must therefore go hand in hand with reforms to make this navigation far more straightforward.

A YouGov survey for Turn2us in 2024 found that 77% of respondents believed they would struggle when they needed to claim benefits if their circumstances changed. This highlights the real challenges that people face in navigating a system that is often confusing and difficult to understand. The Government must ensure that their powers to recover overpayments differentiate between fraudulent criminal activity and genuine mistakes. Without this distinction, there is a risk of penalising individuals who have simply struggled to navigate the system, and those people may already be in vulnerable situations.

Getting this Bill right, however, will mean that £1.5 billion of taxpayers’ money over five years will be saved. That money can be invested in the services that people in my constituency and across the country rely on, from public transport to local infrastructure. With fraud and error costing nearly £10 billion a year, we must act decisively to drive down this fraud and error and protect public funds. At a time when families are struggling and public services are under pressure, ensuring that taxpayers’ money is spent where it is truly needed is not just responsible, but essential.

This Bill must tackle fraud and error in a way that is fair and proportionate and does not punish those who have made an honest mistake. I know that the Government have worked hard to include measures that will ensure that these critical distinctions are made as the Bill progresses. However, it is crucial that we do not shy away from coming down on this issue, and that we ensure constituents see their hard-earned contributions going directly to the services that strengthen our communities.