Public Authorities (Fraud, Error and Recovery) Bill

Steve Darling Excerpts

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

[Madam Deputy Speaker (Caroline Nokes)]

I call the spokesperson for the Liberal Democrat party.

[Steve Darling (Torbay) (LD)]

I start by assuring the hon. Member for South West Devon (Rebecca Smith) that my office has talked me out of mentioning the Waitrose cheesecake that was a hot topic throughout Committee. On a more serious note, I would like to explore the challenges in the Bill. As we have heard, fraud can only be a bad thing, as it robs the public purse, but we need to ensure that our approach is proportionate, and that is where the rub is for us, as Liberal Democrats.

First, I want to focus on the covid crisis. We all lived through that, and some of us were in hot seats. I was leader of Torbay council at the time, so it felt as if I was in the eye of the storm for some of those challenges. I am afraid to say that for many of us in this Chamber, it feels as if the Conservatives were asleep at the wheel, given the level of fraud that we saw taking place during the pandemic. The fact that £10 billion-worth of fraud occurred around personal protective equipment is shocking. Some £16 billion of fraud occurred around support for businesses. While it was extremely important that we supported businesses appropriately, the safeguards were extremely limited. One businessman in Torbay said to me that it was as if the Chancellor of the Exchequer had got handfuls of £50 notes, filled carrier bags across the town centre, and said to the criminal element, “Come and help yourselves.” The reality is that the money could and should have been put to good use. In my constituency, Torbay hospital is crying out for investment. We have a sewage scandal, and the Environment Agency could be supported in tackling that issue. We also have the cost of living crisis; we could support people in ensuring warmer homes. All that money could help with those things.

A colleague and good friend has already alluded to the carer’s allowance crisis, and the real challenge that it poses. More than 136,000 people—the population of the Torbay unitary authority area—are affected by it. There is some £250 million of cost on those people. We Liberal Democrats fear that the powers in the Bill could make things even tougher for those who have challenges to do with the carer’s allowance.

Members do not have to take it from me that the benefits system is broken; the Secretary of State for Work and Pensions, the Chancellor of the Exchequer and the Prime Minister have said that it is. If there is such agreement in Government that the benefits system is broken, why are we adding to this edifice? It is built on a foundation of sand, yet we are looking to pile more responsibilities on to it, without looking for the true, positive culture change in the DWP that we need.

Colleagues have alluded to the areas of debate around the Bill. I will touch on a few major concerns that we Liberal Democrats have. The opportunity that the Bill presents for Orwellian levels of mass surveillance of those who get means-tested benefits causes me grave concern.

[David Davis]

The hon. Gentleman has got to a point on which I wholeheartedly agree with him. Something like 9.8 million people will fall directly under the reach of this Bill; if we include their carers, landlords and a variety of other people, it is more than 10 million people. I would think that the number of fraudsters in that number is very small, but not vanishingly small, so we will put probably more than 9 million people under unnecessary surveillance. He is right to call that Orwellian.

[Steve Darling]

I concur strongly with the right hon. Gentleman.

Also of core concern to us is the lowering of the bar for being able to take money out of people’s bank accounts, and the opportunity to withdraw driving licences from offenders. However, as colleagues have said, the best practice document is missing. That was alluded to on a number of occasions. It is difficult to understand the true nature of this Bill if we do not know what that guidance will look like.

We also have real challenges around Henry VIII powers. Elements of the Bill should be written into it, but are not, so there are real issues there. We welcome the independent reviewer of the Bill, but the Secretary of State will be able to appoint their own independent reviewer; we do not welcome the Secretary of State effectively marking their own homework by making the appointment themselves.

Big Brother Watch, Age UK and a multitude of other charities have highlighted concerns about the Bill, such as the breakdown in trust that it could cause and the risk of amplifying the challenges faced by people with disabilities. It could also impact on some of the most vulnerable people in our society, such as those with learning disabilities. That causes us great concern; Liberal Democrats would like to see a real culture change. In our manifesto, we talked about co-design, which involves working with people who are benefits claimants and people with disabilities to make sure that the system is a better fit and more fit for purpose. As far as we are concerned, taking a more relational approach, rather than an adversarial one, is the way forward.