Public Authorities (Fraud, Error and Recovery) Bill

Debate between Luke Charters and Judith Cummins

2nd reading
Monday 3rd February 2025 Commons Chamber

[Mr Charters]

As I will come to, it is about the advanced techniques that these fraud gangs are using. It is industrial-level criminal activity.

Last year, £7 billion was cheated out of taxpayers’ pockets, and we have been left to clean it up. If we had that cash, we could have funded extra police officers or vital repairs to some of our hospitals. Frankly, it would also have made it easier to fill the £22 billion black hole left by the Conservative party, wherever its Members are.

I now turn to a few concrete examples of why this Bill matters. First, on the economics, the Bill is expected to save £1.5 billion over the next few years. These are not insignificant sums of money. It is important to stress that the public purse is not an endless pot, and the contributions of millions of working people across the country, including many of my constituents in York Outer, help to fund it. They want to see taxpayers’ money being spent wisely. Stealing benefits is not just fraud; it is a slap in the face to the hard-working taxpayers who fund our public services. This Bill changes that.

The Bill is not just about keeping more taxpayers’ cash in the Treasury. As Brits, we embody the values of kindness, decency and fairness. Although we are rightly outraged about criminals circumventing our system, we all want a reliable welfare state for the people who truly need it. Every £1 stolen by benefit fraud gangs is £1 less for a low-income single parent looking for a job on universal credit, £1 less for a disabled person on the higher rate of PIP, and £1 less for someone on carer’s allowance. In many cases, these payments are a lifeline for people getting back to work. At the moment, this cash is going to criminals rather than carers.

I now turn to a few recent cases of organised benefit fraud to elucidate the scale of the challenge we face. All have been settled and are now in the public domain following prosecutions.

In May 2024, we saw the largest benefit fraud case in history. The operation saw five Bulgarian nationals forge thousands of documents to make thousands of fraudulent universal credit claims to the value of £50 million.

In October 2023, seven people were sentenced for falsely claiming employment support allowance. They used advanced techniques to hijack identities, resulting in the crime group stealing hundreds of thousands of pounds.

An investigation by City of London police in 2020 saw enforcement against a benefit fraud ring to the tune of hundreds of thousands of pounds. I take a brief moment to praise the excellent work of our law enforcement agencies, including City of London police, who I have met, for their collaboration. That is exactly how the last fraud ring was closed. This example shows the benefit of public-private partnerships, which this Bill seeks to catalyse, in tackling benefit fraud,

What do these cases have in common? The benefit fraud was actually a predicate to other illicit activities. They demonstrate the need to upgrade our response, and this Bill represents additional lines of defence in our rising to the challenges we need to fix. Some of the measures in this Bill will do exactly that: supporting covid-era fraud investigations; strengthening the PSFA by establishing it as a separate entity; giving the PSFA powers to compel evidence and enter premises with a warrant; extending the time limit to bring action against historical fraud to 12 years; and granting extra powers for recovering money.

I recently visited the national economic crime centre at the National Crime Agency, and I know the scale of the challenges we face when it comes to tackling fraudsters. I have no doubt that, with this Bill, the Government will smash the benefit fraud gangs, but we must also acknowledge that this Bill represents a significant shift for the financial industry. It is a step into a new dawn for those in the banks who work on tackling economic crime, as they will be spending more time tackling benefit fraud.

It is right that the Government are pursuing a growth-first strategy, which has to be carefully balanced with the economic crime plan. The Financial Conduct Authority’s new consumer duty was an important stride forward for the industry, and I was proud to play a small role in that, but, as scrutiny of the Bill continues, I warmly invite Ministers to engage with the FCA and report back to the House on how the new powers will carefully balance consumer vulnerability with the need to drive down benefit fraud.

Finally, there is an important scenario that must be considered more carefully as the Bill progresses in this place. A victim of domestic abuse—let us call her “Jane”—is quietly saving money to escape, but then an account information notice is issued. Based on three months of bank statements, a debt recovery notice follows. Jane has 28 days to appeal, but no access to legal advice. Worse still, her abuser intercepts the letter and her savings, which are her lifeline to escape, are seized. Her escape plan is exposed, putting her at risk. We must ensure that financial processes do not accidentally or invertedly work against victims of domestic abuse in those scenarios, as I am sure Ministers are aware.

To close, the Prime Minister said in a speech at a recent Labour party conference:

“If we want to maintain support for the welfare state, then we will legislate to stop benefit fraud”.

When it comes to tackling organised crime groups, not only is he right, but the Bill is proof he is delivering on his promise. The Bill is about smashing the benefit fraud gangs, treating taxpayers’ money fairly and ensuring we have a safety net left for the genuinely vulnerable people who need it. I refer time and again to a point I made in my maiden speech that rings as true today as it ever has done. I said:

“I want to ensure that there is no safe harbour for fraudsters, no compromise in our pursuit of their schemes and no escape from justice.”—[Official Report, 17 July 2024; Vol. 752, c. 124.]

[Madam Deputy Speaker (Judith Cummins)]

I call the shadow Minister.

Farming and Food Security

Debate between Luke Charters and Judith Cummins

Tuesday 8th October 2024 Commons Chamber

[Mr Charters]

I thank my hon. Friend, who is a fantastic advocate for her constituents. The agriculture budget is hugely important to protect food security.

Another critical issue is biosecurity, so I was disappointed to see that the Opposition left it out of their motion. At present, the UK has a number of confirmed cases of bluetongue. I was briefed by the deputy chief veterinary officer earlier today. I welcome the Secretary of State’s action on bluetongue serotype 3 vaccines. That, coupled with the exclusion zones policy, is a welcome first response to what is a complex crisis fuelled by climate change—I will not get into the intricacies of midges and the wind from the continent. That is a clear signal that the Government are taking biosecurity seriously.

I want to touch on my recent engagement with Sainsbury’s. I hope colleagues from across the House will join me in welcoming food retailers that put food security at the heart of their business model. I am encouraged by what Sainsbury’s is doing.

I am conscious of time, but I just stress that food is one of the 13 critical national infrastructure sectors in the UK. Food security is national security, so I respectfully say to the Opposition: stop the politics and work constructively with us on food security. It is great to see the Government making progress. I look forward to working with them to safeguard Britain’s national food security.

[Madam Deputy Speaker (Judith Cummins)]

I call Dr Roz Savage to make her maiden speech.