Public Authorities (Fraud, Error and Recovery) Bill

Siân Berry Excerpts

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

[Andrew Western]

I assure the right hon. Member on his point with regard to the Scottish Government. However, I will resist new clause 13 because the publication of the DWP’s annual accounts will provide sufficient information about our performance on fraud and error.

Government amendment 42 specifies that the functions of the independent person who can be appointed by the Secretary of State in clause 87 do not apply to devolved benefits unless those are delivered by the Secretary of State under agency agreement. Government amendments 60 and 67 will amend the time required for compliance with a production order served in Scotland. That is to match normal conventions in Scotland. Government amendment 43 ensures that the new debt recovery powers taken by the Secretary of State under the Bill apply only to devolved benefits, while the Secretary of State recovers devolved debts under agency agreements.

Government new clause 18 and Government amendment 33 are consequential amendments to the Social Security Fraud Act 2001 and ensure that the powers of Scottish Ministers under the 2001 Act are unchanged by the Bill. Government amendments 36, 37 and 38 seek to clarify exemptions in the DWP’s information-gathering powers to deliver the intended policy outcome.

A key safeguard in the new DWP information-gathering powers is the exclusion of personal information about users of particular types of free services, such as advocacy and advice services that offer crisis support, for example when someone is fleeing domestic abuse. The intent of the safeguard is to ensure that nobody is deterred from seeking the support they need when they need it. However, the current drafting of that exemption in the Bill as “not for profit” is too broad. That excludes certain information that is very likely to be relevant to a DWP fraud investigation. For example, it prevents the Department from compelling information from housing associations, such as an individual’s address or tenancy, which can be instrumental in proving or disproving a suspicion of fraud.

[Siân Berry (Brighton Pavilion) (Green)]

The independent person is required to produce an annual report on the use of the new powers, which, as the Minister has just laid out, are quite extensive. However, there is no requirement for the DWP to adopt the report’s recommendations. In cases where it does not accept the recommendations, will the Government consider committing to at least explaining why they have reached that conclusion?

[Matt Western]

I would be very happy to report to the House on the reasons why we would not do that. I am sure the hon. Lady will allow me to write to her separately to set out how I intend for us to do that. It seems to be a reasonable request.

Returning to my original point, the current drafting would mean that DWP can compel information of that kind from private landlords or estate agents, but not from housing associations. There is an inequity there that we are seeking to address with the amendments, clarifying the drafting and continuing to protect the personal information of service users of crisis support or advocacy services.

The Bill also brings forward new information-gathering powers that govern how DWP-authorised officers can compel information to support an investigation into fraud. It also sets out where information must not be compelled—for example, to protect the long-standing principle of legal professional privilege. Separately, the Bill brings forward powers of entry, search and seizure for DWP-authorised investigators, those tasked with investigating the most serious cases of fraud. It does that by bringing those authorised investigators under the remit of the Police and Criminal Evidence Act 1984 in England and Wales, and by creating similar powers in Scotland for DWP-authorised investigators. That ensures that those investigators are governed by a similar legal framework to other law enforcement bodies that are granted access to use those types of powers.

Government amendment 41 seeks to ensure that the exemptions to information that DWP-authorised officers can compel are not applicable to authorised investigators when using powers of entry, search and seizure. Government amendment 45 mirrors that provision for the PSFA. Those amendments will support effective fraud investigation, as without access, crucial evidence might remain out of reach, slowing down our response to fraud. Those exemptions are important, but the Police and Criminal Evidence Act 1984, which applies in England and Wales, already provides such restrictions and safeguards by only enabling that information to be compelled with the approval of the courts, coupled with similar conventions that apply for Scotland. The amendment ensures that there is no duplication. The powers in the Bill remain in line with existing conventions, as set out in PACE, and correctly reflect the norms of the Scottish legal system.

Turning to Government amendments 61 to 66, paragraph 10 of schedule 3ZD currently refers to definitions within PACE in relation to special procedure material, confidential professional material, excluded material and items subject to legal privilege.

Government amendments 63 and 51 set out specific definitions to avoid linking provisions that relate solely to Scotland with existing legislation that applies to England and Wales. This also ensures that legal privilege and “items subject to legal privilege” references contained in the schedule are correctly defined for Scotland. Government amendments 61, 62, 64, 65 and 66 are consequential to amendment 63.

Government amendments 47 and 48 ensure that the powers for the DWP under PACE taken by the Bill in schedule 4 are aligned with those of the police and other Government Departments, such as HMRC, and provide a clear legal framework for what evidence can be seized and how it should be handled. Government amendments 47 and 48 mean that DWP-authorised investigators, such as the police, can seize items that are reasonably believed to be evidence of an offence, not just DWP-related offences, when undertaking entry, search and seizure activities in England and Wales. This will mean that potential evidence of any other offence, if discovered in the course of a search, can be preserved and may be seized where it is considered necessary to prevent it from being destroyed or moved. The amendments ensure that the law is clear on how it must be handled and transferred to the most appropriate law enforcement agency in England and Wales. Government amendments 49, 50 and 59 make similar provisions for authorised investigators in Scotland to those I have just described for England and Wales.

Government amendments 57 and 58 clarify how authorised investigators can prevent access to seized evidence from any offence if it may prejudice criminal proceedings in Scotland, by amending the definition of “offence” in schedule 3ZD inserted by schedule 4 of this Act. This mirrors the same provisions that are already in the Bill as it applies to England and Wales.

Government amendments 53, 54, 55 and 56 are all minor and technical amendments to correct inconsistencies in terminology. Government amendment 34 is a minor and technical amendment to provide the correct reference to powers in the Social Security Administration Act 1992, to ensure that the powers in Scotland align with those in England and Wales. Government amendment 52 amends the period of time in which a warrant must be exercised to Scotland from three months to one month. This corrects the Bill to ensure that it is consistent with the usual practice in Scotland.

Government amendment 70 ensures that the court has the power to order a person, having been disqualified, to provide their NI or EU driving licence, as is already the case for those holding a GB licence, under the new debt recovery powers. The Bill as drafted would allow a DWP debtor who evades payment and holds an NI or EU licence to be disqualified from driving. However, it inadvertently limits the court’s ability to order that person to produce their licence unless it was issued in Great Britain, undermining the power and causing administrative difficulties for the court and the Driver and Vehicle Licensing Agency. Government amendment 70 corrects this and ensures parity between GB, NI and EU driving licences under the powers in schedule 6.

Government amendments 73, 74, 77, 78 and 79 ensure that the application and limitation period in clause 99 follows the policy intention that the PSFA can investigate fraud and recover debt in England and Wales. Government amendment 44 also ensures that the DWP’s debt recovery powers in this Bill are not limited in Scotland to the usual five-year time limits in the Prescription and Limitation (Scotland) Act 1973. This makes it clear that the longer 20-year recovery period in Scotland applies to such provisions introduced or amended by this Bill. As I have set out, the intent behind these amendments is to ensure the delivery of the intended policy intent or to ensure the correct territorial application of the Bill.

--- Later in debate ---

[Siân Berry]

There is a lot I could say, but I will mainly just commend to Members my new clause 7, which would remove official error from the most punitive measures in the second part of the Bill. I spoke against the whole suite of intrusive legislation in the second part of the Bill on Second Reading, and Green MPs still oppose it now. I was pleased to serve on the Public Bill Committee, and I will be supporting a number of other amendments that I also backed there, alongside the hon. Members from both sides of the House who proposed them. On Second Reading and in Committee I described how the Bill treats already stigmatised benefit claimants as suspects, not citizens, through blanket intrusion and surveillance. It is absolutely wrong that this legislation should go through in this form. I think the first part works, but the second part is absolutely out of order.

New clause 7, tabled in my name, is about fair play. It would bring a test for the recovery of universal credit overpayments caused by official error into line with regulation 100(2) of the Housing Benefit Regulations 2006, so that they could be recovered only where the claimant could have reasonably been expected to realise that there was an overpayment. Let us be in no doubt, mistakes by the DWP can have huge financial and psychological impacts on people who are receiving benefits, and the risk of harm is particularly acute with official error overpayments, which individuals have no way of anticipating. I point out that new clause 7 is equivalent to an amendment proposed by Labour Front Benchers during the passage of the Welfare Reform Act back in 2012, when the Government first started to recover universal credit overpayments.

Turning to a few of the other important amendments before the House today, I restate my support for amendments 2 and 5, in the name of the hon. Member for Torbay (Steve Darling). These seek simply to remove the totally indefensible bank spying powers. I express my support for amendments 10 and 12, in the name of the hon. Member for Poole (Neil Duncan-Jordan), which rightly seek to do away with the driving disqualification powers, which I have previously opposed. I also put on record my support for amendment 11, also in the name of the hon. Member for Poole, which rightly limits the banks’ spying powers to cases with existing suspicion of wrongdoing. I am pleased that the hon. Member for Liverpool Wavertree (Paula Barker) has taken forward amendments 8 and 9, which I tabled in Committee. My Green party colleagues and I will also be voting for new clause 1, in the name of the hon. Member for Torbay, on carer’s allowance and lessons learned.

It matters when we treat people who need a safety net as suspects. It matters when Governments invade privacy with a blanket intrusion that affects older people, disabled people and other minorities in a disproportionate way. And it matters that the powers proposed today extend to impoverishing citizens and punishing them for our own Department’s mistakes. Treating people with humanity and due process should be the default setting, not these intrusive new blanket laws, and I hope that Parliament will ask Ministers to dial up the competence, dial down the stigma and think again.

[Ann Davies (Caerfyrddin) (PC)]

Over the past few months, it has been one thing after another for the vulnerable, the sick and disabled people. The recently announced cuts to welfare will affect 6% of the population in Wales, according to Policy in Practice, punishing the sick and disabled. This Bill adds to that punishment by increasing state financial surveillance of welfare recipients. It is full of intrusive measures, from granting access to three months of bank statements, to allowing direct deductions from bank accounts without court orders and providing police with powers under the Police and Criminal Evidence Act 1984 to enter and search a property. That is not just my opinion: numerous charities and organisations from Age UK to the Child Poverty Action Group support Big Brother Watch’s recommendation to oppose eligibility verification powers under clause 74, for example.

Similar powers were proposed by the previous Conservative Government and considered a potential breach of privacy under the Human Rights Act. Labour MPs at that time were among critics of those powers. It is disappointing to see so few Labour MPs here today, but I thank those who have once again spoken up. I am glad to see amendments, including amendments 8 and 9 tabled by the hon. Member for Liverpool Wavertree (Paula Barker) and amendment 11 tabled by the hon. Member for Poole (Neil Duncan-Jordan), that seek to address such concerns, including by limiting or removing powers to compel banks to provide sensitive financial information.

Even the thought of this provision is causing real anxiety and distress, such as for my constituent Simon Mead and his family. Mr Mead’s daughter, who receives PIP due to the long-term effects of brain cancer as a child, and his son, who suffers from psychosis and schizophrenia, are extremely worried about the Government accessing their private financial decisions. It is already affecting their day-to-day life and decisions. When I wrote to the Government outlining Mr Mead’s concerns before the Bill was published, I was told that the Bill is

“not designed to cause distress or to undertake covert surveillance of disabled people, or any benefit claimant”.

Well, that is obviously not the case, is it?

Combined with restricting winter fuel payments, the refusal to abolish the two-child cap and the sweeping welfare cuts, many vulnerable and disabled people genuinely feel that they are being disproportionately targeted. This is a reality that the Labour Government must accept and address. The Bill further stigmatises people who we are supposed to protect—those who are entitled to state support—who are already suffering following recent UK Government decisions. As Members of Parliament, it is our job to better people’s lives and ensure that everyone in our community feels supported. We are here to serve and to serve all our constituents, which includes the vulnerable, the elderly, the disabled and the infirm. We are not here to cause further distress and hardship. We need to ensure that constituents have access to the help and services they need. Sadly, this Bill does the opposite.