Public Authorities (Fraud, Error and Recovery) Bill (First sitting)

Siân Berry Excerpts

Committee stage
Tuesday 25th February 2025 Public Bill Committees

[Andrew Western]

Q I have one further question. In considering the Bill and discussing it with various people and stakeholder groups, the one thing that seems to come through incredibly strongly is the importance of data sharing, as the single biggest thing that we can improve to tackle fraud. My general question is: would you share that view? More specifically, are we not sharing data with or receiving data from any organisations at the moment that you think we should be and that would help us to tackle fraud, both in the DWP and across the public sector?

Alex Rothwell: Data sharing is critical to our ability to prevent fraud. We have a particular challenge in the NHS in that medical records are in a particular category, so we are exempt from the Digital Economy Act 2017. Perhaps I would focus in the first instance on the rich data sets that the Government actually hold and our ability to communicate inter-Department. Those data sets are critical, yet it is still challenging to obtain data. In many ways, the data protection legislation already provides the ability to share information, particularly where fraud is concerned, although the application of it is often quite risk averse. I wish it had been called the Data Sharing Act and not the Data Protection Act, quite frankly.

Kristin Jones: I come from a slightly different angle on this. Having prosecuted for many years and had to deal with the Criminal Procedure and Investigations Act 1996 and the responsibility to gather material and go through it, I think it is important, if you have data, to decide what you are going to do with it. In preparing for this Committee, I looked at the National Audit Office report on carer’s allowance. There you have a lot of data being gathered, passed and, if it is not addressed, discarded. For me it is important, if you gather data, to do something with it. There has been a lot of discussion about error. It is important for the public that, when they apply for something that they may not be entitled to, if that information is held, they can rely on that. If you apply for a passport and you fill the form in wrongly, you do not get your passport. It should be the same in other parts of government. You should be able to rely on the information the state already holds on you. This relates to the point about child benefit.

[Siân Berry (Brighton Pavilion) (Green)]

Q I want to go back to the question on proportionality. The previous witness emphasised that she was concerned that the eligibility-verification powers might go beyond proportionality and risk additional intrusion. When you are commenting, are you commenting on those powers as well, or mainly on the other parts of the Bill?

Alex Rothwell: In terms of search warrants and physical access?

[Siân Berry]

Yes. The other powers that you mentioned already exist and are being transferred to a new place where things are conducted. Eligibility verification in the form that it is written is quite novel.

Alex Rothwell: Does His Majesty’s Revenue and Customs not have the ability to conduct those inquiries?

[Siân Berry]

As inquiries, but the difference is that we are talking about routine use.

Alex Rothwell: More extensive use.

[Siân Berry]

Yes. Would you care to comment on the eligibility-verification powers more specifically?

Alex Rothwell: I can see why there is concern. People have complex lives—perhaps it is not as straightforward as how much capital is in a bank account at a particular time. I think the powers need to be exercised very carefully. I am reassured by the opportunity to test and learn from the process through oversight, but I do recognise the concerns.

Kristin Jones: I used to be in charge of international assistance when I was at the Serious Fraud Office. One of the difficulties is that whereas other countries have a central bank register or building where you can tackle that and find out all the accounts and individual holes, here we do not. It is more tricky to try to verify financial information because there is no central register.

Alex Rothwell: We were speaking before about whether it is flexible enough to cover future events. The way that we use cash or funds is changing in terms of digital currencies and so on, and the way that people hold value is changing.

[Siân Berry]

Q Were those last two comments more about the effectiveness of the legislation?

Alex Rothwell: Yes.

[Michael Payne]

Q Thank you both for sharing your experience and expertise with us this morning. It is estimated that there was about £5.4 billion-worth of fraud and error in temporary covid-19 schemes that were not run by HMRC. You will know that this is an area of significant public interest. The Public Accounts Committee said:

“It is very unlikely that most of the losses due to fraud and corruption”

during the pandemic

“will ever be recovered.”

How far do you agree with that statement? Do you think the new powers for the Public Sector Fraud Authority change the prospects?

Alex Rothwell: I absolutely do think they change those prospects. I was still in law enforcement when covid-19 was happening, and there was an extensive discussion about the police’s ability to support investigations. Frankly, policing had significant challenges with fraud, and still does, in terms of the volume of attacks against individuals and businesses, which made supporting the public sector almost an impossible ask, so I certainly welcome the ability to strengthen the public sector fraud response.

On whether the money will be recovered, there are significant challenges, as I am sure you are aware. It is right to apply a cost-benefit approach as well; although there is a moral imperative, we increasingly look at things in a commercial sense and at whether there is financial value in recovering funds.

Kristin Jones: It is very difficult to get money back from fraudsters, especially where it is organised, because the money disappears into different accounts in different names, and overseas through lots of corporate bodies, so it will be a big challenge. The important thing about this piece of legislation is whether we are future-proofing it so that, looking forward, we can learn from what has happened in the past and not repeat the mistakes.