Public Authorities (Fraud, Error and Recovery) Bill

Peter Bedford Excerpts

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

[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.

[Mr Peter Bedford (Mid Leicestershire) (Con)]

The Bill addresses the serious issue of fraud and error in our public services. I welcome the Government’s continuation of the work of the previous Government to protect taxpayers’ money and uphold the integrity of our welfare system. The amendments proposed by the official Opposition would not undermine the Bill; they would enhance it. Our amendments would preserve the fundamental principles of fairness and proportionality while strengthening the tools at our disposal to tackle wrongdoing.

In that spirit, I rise to speak in support of new clauses 8 and 21. New clause 8 is a measured and necessary proposal that would simply bring the Department for Work and Pensions in line with other Government bodies, such as HMRC and the Child Maintenance Service, which already have the power to issue arrest warrants for cases of serious fraud against the state. Why should it lack those enforcement capabilities when the crimes that it deals with are just as serious?

The taxpayer enters into a social contract with the state—a contract based on trust, responsibility and accountability. My constituents pay their taxes and quite rightly expect that those who cheat, lie or exploit the system will face the consequences. We in this House are the guardians of that social contract. If the public believe that we are turning a blind eye to fraud or failing to act decisively, that trust begins to erode and the social contract will be put at risk. Illegal actions must have legal consequences. In supporting new clause 8, the Government could send a clear and unequivocal message: fraud and deceit have no place in our society.

Turning to new clause 21, it has recently been highlighted that individuals are using social media to promote ways of defrauding the system, including through the Motability scheme. That is deeply troubling. Although Ministers have previously responded positively to my questions on that, the current version of the Bill does not go far enough. Unless the Government support our amendments, they will fail to take the concrete steps needed to address that evolving form of deceit.

This House has an opportunity today to work across party lines to further strengthen the Bill and reaffirm our commitment to protecting the social contract between the Government and those governed. Let us act with unity and resolve to reduce fraud, restore public trust and ensure that our systems work for those who truly need them and not for those who seek to abuse them.

[Sarah Olney (Richmond Park) (LD)]

Under the previous Conservative Government, fraudsters got away with claiming billions of pounds of covid support funds, as an eyewatering £39.8 billion went uncollected due to tax evasion and other criminal activity. While vulnerable members of our society have seen their benefits cut and our public services are in need of investment, it is not right that public spending has been misplaced into the pockets of fraudsters. I am therefore grateful for many of the measures in the Bill that will work to reduce instances of fraud. However, I have concerns about some of the broader measures regarding the powers the legislation would give the Department for Work and Pensions and the potentially intrusive impact that could have on the civil liberties of citizens.

I speak in support of new clause 23, tabled by my hon. Friend the Member for Torbay (Steve Darling), which would require a report to Parliament within six months on the causes and cost of public sector fraud during the covid-19 pandemic. The report would include an account of any fraudulent payments and a review of procurement practices during covid, including contracting for suppliers and the role of political appointments and personal connections in procurement decisions, as well as an assessment of the adequacy of Government oversight to prevent fraud against public authorities. Much of that work has already been undertaken by the Public Accounts Committee—I am a member, as I was in the previous Parliament—and it would be worthwhile for the Minister to take a look at some of our reporting on those topics.

If failings are found, the new clause would require an outline of corrective actions, including a statement to this House to acknowledge the findings and to set out actions planned to ensure that any failings are not repeated. With public trust in politics at alarmingly low levels, we must take all possible steps to ensure integrity and the highest possible standards in governance. The cronyism, rule breaking and sleaze scandals of the last Conservative Government did huge damage to public trust in politics and politicians in this country. The new clause would lead to an increase of accountability and I urge the Minister to accept it.

Even though I am glad to see the Government introduce measures that would crack down on instances of fraud, I have grave concerns about some of the broader measures in this legislation that would lead to an unacceptable increase in intrusion on individual privacy. That is why I speak in favour of amendment 2, which would revoke clause 74 and remove the requirement for banks to look into relevant claimants’ bank accounts. Some measures in the Bill raise significant concerns regarding the privacy of individuals, and I have heard from constituents who are alarmed at some of the powers that could be introduced with this legislation. I believe that fraud must be rooted out and that more should be done to prevent fraud from happening in the first place. However, clause 74 is an unnecessary and invasive step that I urge the Government to refrain from taking.

I have heard from people who are concerned about the powers granted in the Bill because it enables the Government to have direct access to individuals’ bank accounts and even enables the DWP to withdraw funds or revoke driving licences. That concern is particularly serious when it comes to vulnerable groups, such as the elderly, disabled people and those living in poverty, who could face devastating consequences as a result of wrongful penalties.

I welcome the Government’s commitment to cracking down on fraud. There were clear failures by the previous Conservative Government during the covid pandemic, which we saw highlighted in the PPE procurement scandal and the bypassing of the usual procurement rules via the VIP lane. It is essential that proper rules are in place to ensure that public spending is carried out in an effective, efficient and transparent way, and I am glad to support new clause 23, which would strengthen transparency and accountability on this issue. However, grave concerns about the intrusive powers that this legislation could introduce have been expressed across the House today, particularly those that allow the Government to require banks and other financial institutions to share client data, and as such, I urge the Minister to accept amendment 2 to revoke clause 74.

Winter Fuel Payment

Peter Bedford Excerpts

Wednesday 19th March 2025 Commons Chamber

[Mr Peter Bedford (Mid Leicestershire) (Con)]

It is painfully clear that if this Government believe you did not vote for them, they will continue to turn their back on you. That is clear from their treatment of independent schools, small business owners, farmers, and now—and most cruelly—pensioners. Within just weeks of taking office, this shameful Government scrapped the winter fuel payment for 10 million pensioners. Those individuals, many of whom are frail and some of the most vulnerable people in society, have given so much to our country. They built our foundations, our communities and the national fabric, yet in return, they receive a cold shoulder from the Chancellor of the Exchequer. She could not wait to get her hands on their £300.

[John Slinger (Rugby) (Lab)]

Will the hon. Member give way?

[Mr Bedford]

No, I am not giving way.

That small sum of money allowed pensioners to keep the heating on, helping them to make it through those cold winter nights, and supported them in not having to choose between heating and eating. Wherever I go in my constituency of Mid Leicestershire, I have conversations with older people, and the word they use is “betrayal”. It is a betrayal felt deeply in their hearts, particularly by those who helped build this country.

Let us not forget that 348 Labour MPs are complicit in taking the winter fuel payment away from millions of pensioners, and 71% of disabled pensioners have lost that vital support. Labour Members have repeatedly told us that theirs is the party of the NHS, but let us face the facts: they are all complicit in costing the national health service an additional £169 million, which is the cost of looking after the 100,000 pensioners who have been left out in the cold.

[Gregory Stafford]

We have heard the argument from Labour Members that taking away the winter fuel payment somehow benefits the NHS, because money is going into it. Does my hon. Friend agree that the chief executive of NHS England has said that actually, every single penny that the Government are putting into the NHS this year is being wiped out through national insurance rises, inflation and drug price increases?

[Mr Bedford]

My hon. Friend is absolutely right. The numbers simply do not stack up.

In comparison, it was a Conservative Government who introduced the triple lock and increased the state pension by almost £4,000. It was a Conservative Government who reduced the number of pensioners living in absolute poverty by more than 200,000, and it is the Conservatives who have pensioners’ interests at heart.

Oral Answers to Questions

Peter Bedford Excerpts

Monday 17th March 2025 Commons Chamber

[Mr Speaker]

Order. It is topical questions. I have a few Members still get in.

[Mr Peter Bedford (Mid Leicestershire) (Con)]

It is right that the welfare system supports those with disabilities. However, does the Secretary of State agree that social media influencers who are teaching people to game the Motability system in order to get free vehicles is a disgrace? If so, what does she intend to do about it?

[Andrew Western]

The hon. Gentleman will be aware that this issue falls under the umbrella of wider fraud. We inherited an appalling level of fraud in the welfare system under the previous Government. Our fraud Bill goes some way to tackling that, as part of a broader package of £8.6 billion—the largest ever package for tackling fraud.

Oral Answers to Questions

Peter Bedford Excerpts

Monday 3rd February 2025 Commons Chamber

[Alison McGovern]

I apologise to my hon. Friend; I could not quite hear which jobcentres he has visited. However, I thank him for doing so and for connecting with DWP colleagues in that way; it is really valuable. I ask him to take all our thanks back to them.

As part of the new jobs and careers service, we will radically enhance our use of technology so that people can access support through the channels that best meet their needs. Assistive technology can aid the accessibility and inclusiveness of the new service that we are building, so we are listening to those who already use it.

On 22 January, the Minister for disabled people, my right hon. Friend the Member for East Ham (Sir Stephen Timms), and I met colleagues from across Parliament on the all-party parliamentary group on eye health and visual impairment, where we had a great opportunity to listen to experts in this field.

[Mr Peter Bedford (Mid Leicestershire) (Con)]

Does the Minister agree that whatever steps her Department is taking to get people into work are being immediately undermined by the anti-growth, anti-jobs and anti-business measures included in the Government’s Employment Rights Bill?

[Alison McGovern]

I do not.

Public Authorities (Fraud, Error and Recovery) Bill

Peter Bedford Excerpts

2nd reading
Monday 3rd February 2025 Commons Chamber

[Mr Peter Bedford (Mid Leicestershire) (Con)]

I would like to echo many of the points raised by the shadow Secretary of State for Work and Pensions, my hon. Friend the Member for Faversham and Mid Kent (Helen Whately). Like her, I am a conditional supporter of the Bill. While I welcome its intent, I would like to raise a few questions regarding its implementation and its true impact on reducing fraud and error in the system.

Conservative Members understand three core principles: the importance of promoting personal responsibility, the importance of law and order, and of course, the importance of reducing the burden of an overreaching state and ensuring that taxpayers’ money is spent efficiently. I am therefore pleased that by introducing this legislation, the Secretary of State appears to have accepted the long-standing arguments made by Conservative Members. The Bill, much like the previous Government’s policy paper, is both necessary and overdue. It is a scandal that fraud and error in the DWP benefits system has reached such levels. Since the pandemic, the UK taxpayer has overpaid £8 billion due to a lack of proper provision for the DWP to thoroughly investigate cases of fraud and error.

This Bill maintains the focus of the previous Government’s policy paper on fighting fraud in the system. Under the previous Secretary of State, my right hon. Friend the Member for Central Devon (Mel Stride), the DWP saw a 10% drop in fraud and error in the system, which led to savings of over £2 billion between 2022 and 2024. That was achieved through the Department recruiting over 2,000 review agents and hiring 1,400 counter-fraud professionals. Unfortunately, due to time constraints at the end of the last parliamentary Session, my right hon. Friend was unable to carry out the modernisation of information-gathering powers or to broaden the scope of cases that could lead to civil penalties. I have no doubt that, had those Conservative policies been fully implemented, fraud and error levels would be lower than they are now.

Turning to the Bill, although I support its principles, I seek clarification from the Secretary of State on several key points. First, can the Secretary of State guarantee that this Bill will not distract her and the Department from much-needed reforms to benefit conditionality, including work on health assessments and increasing incentives for people to find work?

[Lewis Cocking (Broxbourne) (Con)]

My hon. Friend is making an excellent contribution and I support what he is saying. We must get benefit fraud down and I support some of the measures in the Bill. On the point he has just raised, does he agree that this is only one side of the coin in dealing with benefits in this country? Of course, we must do everything we can to get benefit fraud down, but the other side of the coin is encouraging people to go back to work, because the best form of welfare is having a well-paid job.

[Mr Bedford]

I absolutely agree with all the sentiments my hon. Friend has expressed. Getting a job is the best route out of poverty, and it is the best route to ensuring that we have a more socially mobile society.

Secondly, my instinctive belief in personal liberty means that I believe provisions allowing access to individual bank accounts must be handled with caution. Can the Secretary of State therefore confirm that such measures will be used only as a last resort, and that the independent person appointed by the Cabinet Office will be given full oversight and will report transparently on the use of these powers?

Thirdly, the Bill proposes the restriction of driving licences for those committing fraud against the DWP, but what alternative deterrents does the Secretary of State propose for those who do not drive? His Majesty’s Revenue and Customs and the Child Maintenance Service already have these powers. I would like to see the independent person assess whether these measures are as impactful at the DWP.

Fourthly, Gareth Davies, the Comptroller and Auditor General at the National Audit Office, wrote last year that the forecast

“shows that DWP no longer expects Universal Credit fraud and error to return to the levels seen before…the COVID-19 pandemic”.

In response, the DWP explained that this was because there has been an “increasing propensity” for deceit across British society. I do hope that the Secretary of State will push back against this defeatist culture in the DWP and that my constituents in Mid Leicestershire do not continue to foot an astronomical bill for people committing fraud in the Department.

Finally, to gauge the correct path when dealing with fraud and error in the system, will the independent person conduct a review to determine whether the provisions in this Bill are just as effective as the Conservative policies of the previous Government?

In conclusion, as a Conservative, I support the intent of this Bill. It is shocking that fraud and error are at current levels. However, I urge the Secretary of State to work collaboratively with Members across the House to ensure that individual freedoms are respected, that the Bill does not distract from wider welfare reforms and that its measures deliver a long-term reduction in the welfare bill.

Income Tax (Charge)

Peter Bedford Excerpts

Monday 4th November 2024 Commons Chamber

[Mr Peter Bedford (Mid Leicestershire) (Con)]

The Budget we saw last week was the most anti-aspirational Budget of modern times. It is a bad Budget for growth, jobs and working people. First, let us consider its impact on small and medium-sized businesses, many of which are staffed by working people. The £40 billion tax bombshell, combined with the additional regulation in the Employment Rights Bill, will place a massive burden on businesses, and we will only see more of them close over the coming years. Whatever industry people are in, there are now significantly higher taxes and regulatory burdens than we have ever seen. The ludicrous hike in employer national insurance contributions will lead to many businesses no longer employing new people and having to slash jobs. That is not in the interests of working people. The last Conservative Government played a crucial role in reducing unemployment throughout the UK. The Labour Government have torn that up just a few months into office. Let us be clear that having fewer jobs is not in the interests of working people.

The left like to portray capital gains tax as a tax that only affects the richest in society. However, that is simply not true. Ordinary working people who save and invest and make a modest profit on small shareholdings, or who maybe have a second home for their pension, will see their taxes rise as a result of this Budget. That is not in the interests of working people. It is the politics of envy unleashed.

Having recently secured a Westminster Hall debate on the pub and hospitality sector, which was well attended by Members from all parts of the House, I welcome the penny cut to draft beer. However, that reduction is purely academic if people do not have a pub to go to. This Government have failed to extend the 75% rate relief that the last Government put in place for the sector. The residents of Mid Leicestershire are deeply concerned that this Government’s measures will damage the economy, rather than create growth.

Finally, VAT on education is perhaps one of the meanest policies that this Government have brought in. It will not only affect those who have the wealth to send their children to public schools, but impact those in the state sector, putting additional burdens on our children’s futures.

To conclude, this is not a Budget for aspiration. What is the point in someone setting up their own business? What is the point in saving to pay for their children’s education? What is the point in keeping their family-run farm? Today, we have a Government lacking in any ideas to boost aspiration. Instead, we have the politics of envy at play.