Public Authorities (Fraud, Error and Recovery) Bill

Joshua Reynolds Excerpts

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

[Andrew Western]

I very much agree with the right hon. Gentleman that more needs to be done; what we differ on is the need for specific legislation in that regard. Where we are falling down at present is in the scale of the activity we are undertaking. We could be doing significantly more at the moment, but as I said in response to the previous intervention, I have commissioned work to ensure that that happens. We already routinely contact social media companies to ask them to take down specific posts that could help people to commit fraud against the welfare system. I am very happy to consider practical points, but I am convinced that we have the legislative weaponry required to take the necessary action to deal with people who are encouraging others to commit fraud, both online and elsewhere.

Government amendments 23, 24, 39 and 40 bring into scope the kind of information necessary for fraud investigations and enable the PSFA and DWP to compel certain types of special procedure material, including banking records or records of employment, in line with the policy intent. Requesting this type of information is not new for DWP and occurs under its existing powers. The amendments ensure that the PSFA and DWP can compel this information to support fraud investigations, while also ensuring that important exemptions are in place, such as those for excluded material and journalistic material.

Government amendments 30 and 31 seek to address two separate issues in respect of clause 67. Government amendment 30 includes a provision in the Bill so that the powers granted to the PSFA under the Police and Criminal Evidence Act 1984—or PACE—by clause 7 of the Bill are exempt from the application of clause 67(5). This will ensure that the clause does not interfere with existing PACE provisions in relation to legal professional privilege, enabling the Bill’s PACE measures to function as intended.

Government amendment 31 removes subsection (6) in clause 67, which currently overrides existing self-incrimination protections on the PSFA’s information-gathering powers and PACE powers. This allows the common law principle of the privilege against self-incrimination to apply in the usual way—under the information-gathering powers—and ensures that the proposed PACE powers align with established PACE practices. The amendments ensure that clause 67 provides essential safeguards for the PSFA powers in the Bill related to the processing of information.

[Mr Joshua Reynolds (Maidenhead) (LD)]

I am sure the Minister will accept that there is growing concern about issues of automated decision making, artificial intelligence and algorithms. While wanting to ensure that we get the best results, is the Minister able to commit to the transparency we need when it comes to AI and algorithms in relation to the Bill to ensure that the most vulnerable in our society are not unfairly hit?

[Andrew Western]

The hon. Member will be pleased to know that I can give him that assurance and that we comply with all the Government’s required standards around the publication of such information.

Government amendments 25 and 26 relate to clause 9, which amends the Police Reform Act 2002 to extend the Independent Office for Police Conduct director general’s functions to include oversight of public sector fraud investigators, enabling them to consider PSFA’s use of PACE powers and associated investigations. Clause 9 also enables the Minister for the Cabinet Office to issue regulations conferring functions on the director general in relation to these investigations. Section 105 of the Police Reform Act 2002 sets out requirements for such regulations made under that Act.

However, section 105 only applies to regulations made by a Secretary of State. As the Cabinet Office has no Secretary of State, this section would not include the regulations that the Minister for the Cabinet Office can make under clause 9. Government amendment 26 corrects that technicality so that section 105 also applies to that Minister. In addition, Government amendment 25 simply removes reference to part 2 of the Police Reform Act 2002 within clause 9(1), as the Bill will refer to the Act more widely, rather than just part 2.

Government amendments 48 and 72 provide a clear legislative framework for how the DWP and the PSFA will handle and transfer seized evidence to the most appropriate law enforcement agency, including the National Crime Agency and the Serious Fraud Office. The amendments will ensure that evidence is handled by the organisation best equipped to deal with the specific nature of the alleged crime, fostering inter-agency collaboration and reducing delays to investigations.