Oral Answers to Questions

Steve Darling Excerpts

Monday 17th March 2025 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Steve Darling (Torbay) (LD)]

There continue to be unacceptable delays in processing Access to Work applications, both for my constituents in Torbay and across the country. This leads to fears among disabled people that job offers will be withdrawn by their would-be employers. What reassurance can the Minister give the Chamber that the Government have plans afoot to tackle that backlog?

[Alison McGovern]

The hon. Member makes an important point. We had a manifesto commitment to try to tackle the backlog. We have put more staff in place to deal with that backlog, but we have more to do, because it is important that disabled people are able to take up jobs that are offered to them. We need to make sure that that is a scheme that works.

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[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Steve Darling (Torbay) (LD)]

Will the Secretary of State confirm that those people in receipt of disability benefits who profoundly cannot work will not face a cut in their benefits?

[Liz Kendall]

I say to the hon. Gentleman, just as my right hon. Friend the Minister for Social Security and Disability has said, that we know there will always be people who cannot work because of the nature of their disability or health condition, and those people will be protected.

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

Steve Darling Excerpts

Committee stage
Thursday 13th March 2025 Public Bill Committees

[Rebecca Smith (South West Devon) (Con)]

The clause requires the Secretary of State to issue a code of practice about the giving of notices to banks requiring the provision of information, the processing of information, the circumstances in which penalties may be issued to banks, and the circumstances in which the Secretary of State expects to exercise functions to disqualify a liable person from driving.

As we have said several times in Committee, it has been extremely difficult to scrutinise the Bill without the code of practice. Will the Minister confirm when it will be published? I believe he just did, but we will get it on record again. He said that it will be before the Bill is finalised, but it would be useful to know what sight we will have of it beforehand. What can the Minister say about how the code of practice will regulate the giving of information notices to banks?

We clearly agree that the Secretary of State should consult on the draft code, and the Minister has just implied that it will be a public consultation. It would be useful to know what form that consultation will take, and how it will be publicised to ensure that it can be seen by as many people as possible. Will it include a consultation on the impact of bank costs and what those should be, and give banks an opportunity to feed back at that point in time?

The Secretary of State must consult before the first code of practice is issued, which is welcome, but there is no suggestion that further revisions will be subject to any scrutiny. Will the Minister confirm whether that is the case? What oversight mechanisms exist to ensure that the code of practice is not changed for the worse in the future, and to ensure that Parliament remains informed?

When does Minister envisage that the powers in the Bill will first be used, given the delay that the code of practice consultation will necessitate? What might trigger a revision and reissue of the code, and who might be able to alert the Secretary of State to the need for that? The clause implies that the Secretary of State could revise the code, but what would be the trigger and who might be involved? Will there be a non-statutory review after a certain period of time as an initial check and balance?

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Sir Desmond. I thank the Minister for his introduction to the clause and for his assurance that there will be a consultation; it would be helpful if he could explain the likely consultees. Also—Opposition Members have repeatedly raised this question—what are the key principles within that consultation and what areas is he keen to address with the code of practice? The Minister has alluded to that already, but a bit more flesh on the bones would be extremely helpful.

Often, people who commit fraud use other peoples’ accounts and abuse them, and are often financial abusers. Will the Minister flesh out how the code of practice will take that into account? Finally, I would be grateful if the Minister could expand on how the code of practice will take account of people with learning disabilities, covering both those who are able to operate the accounts themselves and those who may need a proxy to manage the account.

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[Rebecca Smith]

The clause makes it an offence for a person to fraudulently claim a non-benefit payment for themselves or another person by making false representations or providing false documentation. Generally, we support this provision.

A non-benefit payment is a prescribed payment that is not a relevant social security benefit and that is made by the Secretary of State to provide financial assistance. Will the Minister provide for the record some examples of the types of payment that would fall within scope of the Bill as a result of this measure? Will he reassure us that it will cover all payments, unlike the provisions on social security benefits, which apply only to the three benefits included in the legislation? The flip question is: does the Minister anticipate any exceptions that will not be covered? If any new non-benefit payments were introduced in the future, would they automatically fall within scope of this legislation? Earlier in Committee we had a similar debate about enabling new benefits to come into scope; would the same apply to new non-benefit payments?

[Steve Darling]

The Minister alluded to proportionality and not wanting to criminalise people in undertaking an administrative charge. As my hon. Friend the Member for Horsham alluded to, it would be helpful if the Minister unpacked a little more for the Committee where that proportionality kicks in.

[Andrew Western]

Where proportionality kicks in is already established in the Department. We have trained investigators who ascertain whether we are looking at deliberate fraud, its severity, and what is therefore the appropriate mechanism to seek recourse. We are talking about administrative penalties for situations in which we consider there to be a clear case of fraud, not error, so proportionality will not really be changed by the Bill. What will change is our ability to extend the existing processes to non-benefit payments.

The example of a non-benefit payment that we use most routinely is a payment from the kickstart scheme, which came about at the end of the pandemic and which I think it is fair to say was open to abuse. We saw some particularly egregious examples of that, so we want to make sure that any similar grant schemes—as opposed to benefit schemes—are within scope of these powers.

On the point that the hon. Member for South West Devon made about only three benefits being in scope of the Bill, that is only as it pertains to the eligibility verification measure. All benefits are in scope of the Bill more broadly.

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

Steve Darling Excerpts

Committee stage
Tuesday 11th March 2025 Public Bill Committees

[The Chair]

I remind Members to send their speaking notes by email to [e-mail] and to switch all electronic devices to silent. Tea and coffee are of course not allowed during sittings.

Clause 75

Eligibility verification: independent review

[Steve Darling (Torbay) (LD)]

I beg to move amendment 37, in clause 75, page 41, line 25, at end insert—

“(1A) Prior to appointing an independent person, the Minister must consult the relevant committee of the House of Commons.

(1B) For the purposes of subsection (1A), ‘the relevant committee’ means a committee determined by the Speaker of the House of Commons.”

This amendment would ensure further oversight into the appointment of the “Independent person”.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 38, in clause 75, page 41, line 29, leave out “person” and insert “board”.

This amendment would replace the “independent person” with an independent board.

Amendment 39, in clause 75, page 41, line 32, leave out “person” and insert “board”.

This amendment is consequential on Amendment 38.

Amendment 40, in clause 75, page 42, line 19, leave out subsection (7) and insert—

“The Secretary of State may by regulations appoint persons to, and confer functions upon, an independent board for the purposes of securing compliance with subsections (1) to (6).”

This amendment is related to Amendment 38.

Amendment 41, in clause 75, page 42, line 23, leave out first “person” and insert “board”.

This amendment is consequential on Amendment 38.

Amendment 42, in clause 75, page 42, line 24, leave out “person” and insert “board”.

This amendment is consequential on Amendment 38.

Clause stand part.

[Steve Darling]

It is a pleasure to serve under your chairmanship, Mr Western. We have touched previously on having an independent overview of the activities that will take place under the Bill, and this is another opportunity to have the checks and balances I have alluded to on a number of occasions. Of course, all Members in the room are reasonable people, but we see in world politics what happens when people are unreasonable. Given that the United Kingdom’s constitution is unwritten, beginning to build those checks and balances into legislation is important. Amendment 37 would hardwire them into the Bill, and I ask that the Minister give it serious consideration. I have heard hints that it may be taken into account in one way or the other when the Bill goes to the other place, but I would welcome some reassurance, if possible, that that is the case.

[John Milne (Horsham) (LD)]

It is a pleasure to serve under your chairmanship, Mr Western. As my hon. Friend the Member for Torbay said, the amendment is about checks and balances. We appreciate that the Bill has been introduced in the context of the Government’s desire to cut the benefits bill, but the Treasury deeming something to be financially necessary does not necessarily make it right.

The percentage lost to fraud and error is relatively modest, but of course the sums are huge because the overall number is huge. We need to remember that these measures will not get anywhere near recovering all that money, so the question is: is the action proportionate, considering the sacrifice we are making in terms of civil liberties? It is vital that we get the best value from public money, but the amount expected to be recovered is just 2% of the estimated annual loss to fraud and error of £10 billion, and just a quarter of what is lost to official error at the Department for Work and Pensions.

As drafted, the clause empowers the Minister to appoint an independent person to carry out reviews of the Secretary of State’s function under schedule 3B to the Social Security Administration Act 1992. There is no external oversight, and that undermines the credibility of the role. Our amendment states:

“Prior to appointing an independent person, the Minister must consult the relevant committee of the House of Commons”,

which means

“a committee determined by the Speaker of the House of Commons.”

Without proper scrutiny, the role’s independence is undermined, potentially damaging trust in the process.

The Committee previously heard evidence from Dr Kassem of Aston University, who stated:

“I would recommend a board rather than an individual, because how sustainable could that be, and who is going to audit the individual? You want an unbiased point of view. That happens when you have independent experts discussing the matter and sharing their points of view. You do not want that to be dictated by an individual, who might also take longer to look at the process. The operation is going to be slower. We do not want that from a governance perspective—if you want to oversee things in an effective way, a board would be a much better idea.” ––[Official Report, Public Authorities (Fraud, Error and Recovery) Public Bill Committee, 25 February 2025; c. 13, Q15.]

A board would ensure that the appointment is truly independent and subject to parliamentary scrutiny. We therefore propose that the Minister must consult the relevant House of Commons Committee before making such an appointment. That simple steps would ensure genuine independence and parliamentary scrutiny, and would strengthen transparency and public confidence.

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That speaks to proportionality, in terms of the way the scope has been narrowed, but also to the work that we have taken to address the concerns, which are understood and heard, about the extent of these powers even with the additional safeguards that we have built in. There have been a number of fair challenges, but I acknowledge and agree with Helena’s points about the safeguarding and oversight that have been built in.

[Steve Darling]

I am pleased to have had the debate. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

Clause 75 ordered to stand part of the Bill.

Clause 76

Entry, search and seizure in England and Wales

[Andrew Western]

I beg to move amendment 34, in clause 76, page 43, line 38, leave out from “the individual” to end of line 1 on page 44 and insert

“is an official of a government department and—”.

This amendment clarifies that to be an authorised investigator an individual must be an official of a government department and be of the specified grade.

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However, that is not specified in the Bill itself. What will be the safeguards on the use of the power, and why they are not included in the Bill? Finally, can the Minister explain why DWP investigators have not been given a power to arrest suspects?

[Steve Darling]

The power to seize items, down in the weeds of an investigation, is essential to ensuring that we hold the right people to account. However, I am alive to the fact that seized items are often kept for a long time. Our mobile phones often contain our whole lives. Not that long ago, a resident in Torbay who was accused of a criminal offence and was under investigation had his mobile phone seized by Devon and Cornwall police for a very long time—a matter of months. What assurance can the Minister give that when the power of seizure is used—particularly when it is used to seize a mobile phone—items will be returned in a timely manner? What timescale does he plan to set for civil servants to return such items?

[Andrew Western]

Let me begin with some of the questions from the Opposition spokesperson, the hon. Member for South West Devon. Her comments setting out the challenge and her commitment to wanting the Bill to work are incredibly welcome. She is right to set out the scale of the challenge. That is why we are taking the powers that we are proposing.

On whether the requests and the use of the powers of search and seizure will be reserved to members of our staff working in serious and organised crime only, the answer is yes. On the level of seniority of team members executing those powers, it is HEO-grade officers that do that. In terms of salary equivalent, salary can be quite a crude comparison for a number of reasons. Police officers undertake shift work and an element of their salaries is higher as a result. Obviously, as members of the emergency services, there is a level of risk to their work. The National Crime Agency suggests that an HEO grade is the equivalent of a police sergeant, although in salary terms, it is probably more akin to a police constable.

On training, they will receive the industry standard training, equivalent to the training that police receive in this area. On safeguards more broadly, for the power in the Bill, a lot of the safeguards in place relate to the fact that a warrant is granted by a judge. There is always that specialist person making a determination in terms of appropriateness and proportionality. All warrant applications and all warrants would be exercised in compliance with the Home Office code of practice for entry, search and seizure. That is specifically limited to serious and organised crime only—that is multiple people working together to commit complex fraud, typically resulting in higher value overpayments.

As I said, everybody executing this power would be of HEO grade. They would have had the industry standard training. Investigations will also be subject to independent inspections, which will report on the DWP’s use of the powers, and any serious complaints can be reported to the Independent Office for Police Conduct. A range of safeguards is built into the proposals.

If I may, I will come later to the question from the hon. Member for Torbay about the return of information. There are specific provisions to enable us to keep items for as long as is needed, but there is a desire to return things as soon as possible. Elsewhere in the Bill, we speak to the specific powers that would be required were we wanting to go further and not return an item. There is a commitment to return, unless specific powers are required to prevent further criminality based on evidence found on phones. I cannot give a specific timeline—something would be kept for the length of time necessary for the purposes of the investigation—but I hear the point, particularly about mobile phones.

I stress again that this is about serious and organised crime. If I think of some of the cases I have seen—Operation Volcanic, for example—we are talking about going into buildings where there are several dozen, if not hundreds, of pay-as-you-go mobile phones set up expressly for the purposes of fraudulent activity and criminality. I would perhaps be less sympathetic to the swift return of those phones, and I hope the hon. Gentleman understands why.

I turn to new clause 3. I appreciate the explanation of the rationale from the hon. Member for South West Devon, but I do not share her view. I gave great consideration to the question of whether to take powers of arrest when first having discussions about the scope and shape of the Bill. The Bill enables trained DWP investigators to apply for a search warrant to enter a premises, search it and seize items or material that may have a bearing on the DWP case being investigated. Put bluntly, it gives us the right tools to do the job effectively.

Crucially, it enhances police efficiency by allowing the DWP to handle warrant applications and carry out search and seizure activity, freeing the police from those administrative and investigative tasks that they currently undertake for the DWP. No longer will DWP investigators always need to rely on the police for search warrants, take up police time briefing them on the specifics of the warrant applications or always be restricted to simply advising the police as to what items may be relevant during a search, only for them to then be seized by the police and later transferred to the DWP.

On efficiency, we are taking the powers we need to smarten up our processes. The current process is clearly imperfect. It is inefficient for both the DWP and the police, as well as burdensome in terms of resource, and the Bill resolves that situation. There is a clear rationale for the powers set out in the Bill, but the same cannot be said for the amendment.

To close, I will explain why it is not appropriate for the DWP to undertake arrests as well. I am concerned about the safety impacts; the police have expertise that equips them to carry out arrests. The policy intent is to facilitate more effective investigations and smoother administration, striking the right balance between activities undertaken by the DWP and the police. A power to arrest would require the DWP to take on roles that go beyond those that are administrative and evidence gathering in nature.

Not only that, but it is common for a serious organised DWP offence to involve other types of serious and organised crimes. As a result, a suspect is likely to be involved in wider criminality than just a DWP related offence, such as firearms, drugs or being involved in people trafficking. It makes sense that the police would conduct the arrest in such a situation and, after that, DWP investigators could focus their time on searching the scene for relevant evidence related to the DWP offence.

In addition, for the DWP to be able to operate independently of the police would require the DWP, for example, to have appropriate vehicles for transporting an arrested person and custody suites for detaining them. Currently that is not the case and, to be clear, we are not moving in that direction. We do not operate extensively in that area and allocating resources there is unlikely to be efficient or make sense.

The powers in the Bill promote effective collaboration between the DWP and the police, bring some genuine efficiencies and allow each team to focus on its strengths, which is the right approach. This amendment would not serve the same purpose and it would add a layer of complexity to the DWP’s work that we are not equipped to deal with, either in terms of the expertise of our team or the equipment that we have. For this reason, I must resist new clause 3.

Amendment 34 agreed to.

Clause 76, as amended, ordered to stand part of the Bill.

Clause 77 ordered to stand part of the Bill.

Schedule 4

Social security fraud: search and seizure powers etc

Amendments made: 4, in schedule 4, page 91, line 28, after “item” insert “or material”.

This amendment clarifies that paragraph 2(3) of new Schedule 3ZD of the Social Security Administration Act 1992 (as inserted by Schedule 4 of the Bill) applies in relation to any item or material.

Amendment 5, in schedule 4, page 91, line 31, after “item” insert “or material”.

This amendment clarifies that paragraph 2(4) of new Schedule 3ZD of the Social Security Administration Act 1992 (as inserted by Schedule 4 of the Bill) applies in relation to any item or material.

Amendment 33, in schedule 4, page 93, line 32, leave out from “individual” to end of line 33 and insert

“is an official of a government department and—”.—(Andrew Western.)

This amendment clarifies that to be an authorised investigator an individual must be an official of a government department and be of the specified grade.

Schedule 4, as amended, agreed to.

Clause 78 ordered to stand part of the Bill.

Clause 79

Offence of delay, obstruction etc

Question proposed, That the clause stand part of the Bill.

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[Rebecca Smith]

Clause 81 amends the Criminal Justice and Police Act 2001 to deal with situations where authorised investigators cannot ascertain whether an item or material contains information relevant to that search, such as when dealing with large volumes of materials or files or electronic devices. That material therefore may need to be taken to be examined elsewhere, and we recognise that the clause allows for material to be seized and then sifted, rather than sifted and then seized. For that reason, we are happy for the clause to stand part of the Bill.

[Steve Darling]

I seek the Minister’s guidance as to how DWP officers, when they undertake these acts, will ensure that seize and sift will not be the standard modus operandi and that it is used only in appropriate cases. When will the Government publish a code of conduct? What guidance will be given? It might be tempting to undertake trawling operations for information rather than taking the spear-fishing approach that would garner the evidence more easily. I would welcome the Minister’s reassurance on that.

[Andrew Western]

I am grateful to the hon. Member for South West Devon for her support and to the hon. Member for Torbay for his questions. By way of reassurance, the DWP cannot just seize anything and everything from a place it has entered with a warrant; it can seize only items that are directly relevant to the investigation. Other oversight is built in, given the ability to make complaints to the IOPC and the oversight powers we are affording to HMICFRS, and people will be trained to the industry standard and so on, but fundamentally they must be able to demonstrate that a seizure is directly relevant to the investigation.

Question put and agreed to.

Clause 81 accordingly ordered to stand part of the Bill.

Clause 82

Incidents etc in England and Wales

Question proposed, That the clause stand part of the Bill.

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[Rebecca Smith]

Clause 88 sets out the mechanism for the recovery of non-benefit payments. This applies when a person misrepresents or fails to disclose a material fact, and as a consequence they or another person receives a non-benefit payment, or an amount of a non-benefit payment, that they would not otherwise have received. Subsection (2) provides a power to recover the overpayment.

Clause 88 also sets out what the Secretary of State must do before an overpayment can be recovered. This includes providing an overpayment notice, the detail that must be included in that notice, and that the person must have had the opportunity to challenge the overpayment. The Secretary of State can issue an overpayment notice only if the person has been convicted of an offence set out in the legislation, or if it appears possible to institute proceedings against a person for an offence. The only grounds to appeal a notice are if there has been no overpayment of a non-benefit payment or if the amount stated in the notice is not correct. Any appeal must be made before the end of the period of one month, beginning the day after the day on which a person was given the notice.

This question has probably been answered in an earlier debate, but I will ask it anyway to get it on the record: will the notices be sent in the post or electronically? That links back to our debate on clause 86; how the Government ensure that the notices get to the right people is going to be particularly important. Finally, why is there no ability to extend the one-month period, and on what basis was one month decided?

[Steve Darling]

I just want some assurance on how it was decided that one month was long enough. For my sins, I served the people of Torbay in elected of office for 30 years before getting elected to Parliament. I am alive to the fact that some people have chaotic lives. I am only too aware of how sometimes people turn up to the citizens advice bureau with a couple of carrier bags full of unopened envelopes because due to their mental health challenges the only way they are able to deal with their world is by putting their head in the sand, sadly.

I wanted an assurance on whether there was a level of flexibility. It appears from the clause that there is a drop-dead proposal here. What flexibility is proposed? I look forward to hearing the Minister speak about those people who are perhaps more vulnerable than the rest of us.

[Rebecca Smith]

I was hasty in putting down my notes and I realised I left out a bit, so thank you for humouring me, Mr Western. Clause 88 also sets out that there is a right of appeal to the first-tier tribunal against the notice, unless it has been revoked on review. We welcome the ability to appeal to the first-tier tribunal, but can I ask the Minister whether any amounts recoverable will be paused during the appeal process? Again, there is only one month to appeal to the first-tier tribunal, so can he explain on what benefit this timeframe was chosen?

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

Steve Darling Excerpts

Committee stage
Thursday 6th March 2025 Public Bill Committees

[Rebecca Smith (South West Devon) (Con)]

It is a pleasure to serve under your chairmanship, Sir Jeremy. As it was to the Minister, the baton has been passed to me from our Cabinet Office spokesperson, my hon. Friend the Member for Kingswinford and South Staffordshire, as part 2 sets specifically how the Bill applies to the DWP.

We recognise that there is a huge amount of work to be done, given the increasing levels of fraud and error against the Department for Work and Pensions in recent years. We broadly support the details of part 2, but unsurprisingly, we will have some questions in the coming sessions, and we are tabling a number of amendments too.

Clause 72 amends the Social Security Administration Act 1992 to provide powers to require information related to fraud. An authorised officer can give a written notice requiring information where they have reasonable grounds to suspect that the person has committed or intends to commit fraud, and where it is necessary and proportionate to do so. The Minister spoke about how this will enable organisations outside the DWP to be required to provide information. It would be useful to understand better the Social Security Administration Act and what it is currently used for, to make sure that we have covered specifically why it needs to be amended in addition to the provisions of this legislation. I recognise what the Minister is saying, but is there a problem now? Are we not able to take its provisions far enough, and so need these changes to be made? Why are existing information-gathering powers insufficient? This is quite a broadening of the current powers, so some clarification would be great.

I have another question on clause 72 and the changes proposed to the 1992 Act. When we talk about a “person”, is this just the person the information is being requested of—an estate agent or whoever it may be—or does the term also relate to the person being investigated? Are we talking about the person who is suspected of committing a fraud, a person in possession of information about that person under suspicion, or both? In effect, who is the written notice intended for? I am sure that is probably straightforward, but it would be useful to have it outlined clearly.

I note what the Minister said about the code of practice, which I was not planning to mention in this speech. I was saving my comments on that for clause 73—we are learning as we go in this. Can the Minister confirm whether there are any limits on the non-financial institutions that will have to provide information under the verification notices? Does this include institutions such as education institutions, insurance companies, water agencies and others that people receiving benefits might be paying bills to? Where do the limits lie around the types of organisations that will be contacted? I appreciate that is done in other legislation at the moment, but it is quite a big move. We may well cover this later, but are they subject to the same sort of time restrictions as other organisations? If a school that has never had to do this before is contacted, and they have no idea of what is expected of them, how are we going to ensure that they are not penalised? This could be the first time that anything like this has come in their direction.

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship this afternoon, Sir Jeremy. Liberal Democrats believe, as do all members of the Committee, that fraud is bad. It clearly impacts on the ability of the state to support people and our communities. It is important to put that on the table. I will give a small overview as we start debate on part 2 of the Bill, but as a liberal, the idea of mass surveillance within this part of the Bill causes me grave concern on a number of levels. This will be unpacked over the next few sessions.

I would welcome the Minister commenting on why this piece of legislation is being rushed. The rush poses a danger to our communities. The fact that the Government commissioned a review into the carer’s allowance overpayments is to be welcomed. We Liberal Democrats called for that, but we are gravely concerned that the Government are bashing ahead with this legislation without being able to take into account any lessons that could be learned from the carer’s allowance debacle.

Although the vast majority of the challenges that we face are error and fraud, my and my colleagues’ concern is that the Government need to fix the Department for Work and Pensions, which is effectively broken. I could wax about that for England, but I will not. When the machine is not fit for purpose, we need to fix it before adding more bells and whistles; simply adding to a broken machine will not fix it. I would welcome some explanation of why we are dashing ahead when we do not have the findings from the carer’s allowance overpayments review. I would also welcome a deeper explanation of what reasonable grounds for suspecting fraud will be. Putting a bit more colour on the palette would be extremely helpful.

[Andrew Western]

I welcome the broad support from the Opposition spokesperson, the hon. Member for South West Devon, for the overall intent of the Bill. She asked a number of questions about the usage of the 1992 Act. It sets out the information-gathering options available to the Department where fraud is suspected. When we want to compel information for whatever reason—it may be a referral, or data or evidence may be suggesting that there has been fraudulent activity—there is the ability to request, as part of an ongoing investigation, any information that may be useful.

There are two principal reasons why we need changes. The first is modernisation, as I said in my opening comments. I am sure all Members can see how being able to request information via digital means will add speed and simplicity to the process. That is a basic modernisation. There is a more significant change in the shift towards an exclusion list rather than an inclusion list of organisations, which broadens the range of organisations that we can request information from.

The hon. Lady asked whether institutions such as schools or utilities companies may be in scope. In essence, anybody is in scope for this power—for a request for information—unless they are withholding exempted information. There is a range of things that would be specifically exempt. Legally privileged material is an obvious example, as is information that could lead to self-incrimination for recipients and their spouses or civil partners.

It is worth saying for clarity that organisations that provide no-cost advice and advocacy services will not be compelled to share personal data about their service users. That will maintain trust, which is an important principle of their work, and allow individuals to seek help without fear of their information being disclosed. There is also an exemption from providing excluded or special procedure material as defined under the Police and Criminal Evidence Act 1984. That includes personal records, including records relating to physical or mental health, human tissue and confidential journalistic materials. Those are the types of information that would be exempt. With the exception of the organisations providing advice and support, all organisations are essentially in scope if they hold other relevant information to help with an ongoing inquiry.

The person in receipt of the notice is the person or organisation we are compelling the information from, rather than the person about whom it is compelled. So the person receiving the notice is the one we are asking for detail from.

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[Rebecca Smith]

I thank the Minister for setting out that information. This is a short clause, so my comments will not be long. It amends section 3 of the Social Security Fraud Act 2001 to add a code of practice on the use of information powers exercised by an authorised officer.

As has been said, much has been made of the lack of a code of practice. We maintain our view, and I am sure other Opposition Members will agree. I have heard the reassurances of the Minister and, earlier today, of the Cabinet Office Minister, but the Minister’s indication of what will be in the code gives me an opportunity to ask a couple of questions.

I welcome that there will be a consultation on the code, although I appreciate that it could slow down the introduction of the legislation. Had the code of practice been developed in tandem with the Bill, or even beforehand, we could have implemented the Bill much more quickly after its passage to crack on with recouping some of the fraudulent costs and highlighting any errors being made. However, we are where we are and, even so, I welcome the consultation.

The Minister has reassured me that we will continue to hear about the code of practice, but my other question goes back to what I said on clause 72 about additional non-financial organisations that might be contacted, and to what the Minister has just said about the fines to be levied for non-compliance. A huge amount of responsibility is being placed on the people who receive these notices. This will be new to them as it is a new Government power, particularly as it pertains to the DWP.

What will be in the code of practice to ensure that we remember the people about whom we seek information are not necessarily the ones at fault? How do we communicate with them so that they want to co-operate, and so that they do not end up in a non-compliant position? This may not be within the scope of the Bill, but how do we communicate to the general public, in layman’s terms, what is expected of them? For example, if this lands on the desk of a primary school headteacher, how will the Department ensure that they understand what has been done and are not terrified by the process? How will it ensure that we achieve the process and outcomes we all seek?

[Steve Darling]

The Minister will not be surprised that I return to the fact that the Bill has been rushed. I respectfully remind him that we are a very refreshed House of Commons. This is fresh information for the vast majority of Members. Although Parliament may have a corporate memory, this Bill has moved at great pace since First Reading and we remain very concerned that this may result in errors.

The Minister has assured us that the code of conduct will be available in due course, but can he identify by what date or by when in the legislative programme? That would give us some comfort. Although positive words have been said about the code of conduct, it drives the culture of an organisation, and culture is extremely important. I look forward to some words of reassurance from the Minister.

[Andrew Western]

I am not sure that I agree with the assertion of the hon. Member for South West Devon that the time it takes to pass the code will significantly slow down the Bill. As she is aware, we are currently working with a range of organisations and stakeholders, and we are gathering information and ideas for a draft of the code.

To answer the hon. Member for Torbay, we hope to share the draft of the code before Committee in the House of Lords. I am happy to put that on the record, as it is an important point that applies to all codes of practice in the Bill, both for the Public Sector Fraud Authority and the DWP.

I am not sure I fully agree with the hon. Member for South West Devon that we could have saved time by having already drafted and consulted on the code. If there were any amendments to the Bill, the code would have to be rewritten, at least to some extent, to reflect them.

I was asked which organisations are anticipated to be called upon to provide information, as well as their willingness to do so and our ability to maintain a positive relationship. They want to engage with this, because tackling fraud is important and has a clear public benefit. We want to make the information notices as clear as possible. People will have at least 14 days to comply with an information request, and they will have the right to appeal should they have any particular issues. We would look to work with them wherever possible to ensure that they are able to provide the information needed. Clear communication is important, and we want to be certain that we achieve it.

I have dealt with the question about the code of practice, and I hope that is helpful to the hon. Member for Torbay. I struggle rather more with his suggestion that our being a new Parliament means the Bill has been rushed. A number of Bills have already made their way through the House since July. The machinery of government must be able to continue at the pace required to react to change, particularly for a Bill such as this where we are responding to evermore challenging and complex types of fraud. The Department for Work and Pensions alone lost £9.7 billion to fraud and error last year, which suggests to me that urgency is required. On that basis, I see no issues with the timings of the Bill.

Question put and agreed to.

Clause 73 accordingly ordered to stand part of the Bill.

Clause 74

Eligibility verification

Question proposed, That the clause stand part of the Bill.

--- Later in debate ---

[Steve Darling]

I will press both my amendments to a vote.

[Siân Berry (Brighton Pavilion) (Green)]

I will press mine too.

[Rebecca Smith]

As we have just heard, clause 74 amends the Social Security Administration Act to give power to the Secretary of State to obtain information for the purposes of identifying incorrect payments of certain benefits. I think that is fairly self-explanatory, so I do not have any questions.

Schedule 3 provides further detail on eligibility verification measures, but what happens when people have an account with a bank or financial institution other than the one that DWP payments are made into? We talk a lot about linked bank accounts, but it is implied that one bank will be looking to see whether a person has multiple accounts. However, people have much more complicated lives.

How does the Minister intend to ensure that we not only look at the account into which the benefit is paid, so that the investigation is more thorough? Thinking specifically about National Savings & Investments—a Government account into which people save money—are we going to make sure that a person’s entire suite of bank accounts are included, or just the one into which the DWP pays money?

That leads me on to my amendments. As the official Opposition, we have tabled amendments 24 and 25 to schedule 3, relating to the scope of who may be subject to the legislation. I will also speak to the amendments tabled the hon. Members for Torbay and for Brighton Pavilion during my comments.

Amendment 24 would include within the scope of the Bill accounts held by a person appointed to receive benefits on behalf of another person. We have tabled that because it would mean that proxy accounts are not excluded and wider patterns of potential organised fraud could be monitored and prevented over time. Without that measure, we believe that it would be easy for fraudsters to deliberately evade monitoring.

[Steve Darling]

I am sure that many colleagues will be alive to the fact the proposals before us mean that one in eight will be affected by these quite significant powers of mass surveillance. Will the hon. Lady advise us on how many more people will be affected by including housing benefit in the proposals?

[Rebecca Smith]

If I may, I will come to that when I speak to amendment 25, which deals with housing benefit. I think it will be simpler if I deal with the amendments separately, but I thank the hon. Gentleman for that question.

We believe that we should look at the recipients of what are essentially proxy accounts because, without that measure, it would be easy, as I said, for fraudsters to evade monitoring deliberately, and therefore investigations and consequences. The Bill in its current form will be limited in how it can tackle welfare fraud, which is one of the main purposes of the legislation. Ultimately—maybe with the exception of error—where people are determined to commit fraud, there are numerous ways of doing it, and if the Government’s Bill is not enabling that significant investigation, we believe that it will fall at the first hurdle.

We also believe that the proposal has the value of increasing protection for vulnerable or older people who may otherwise be unwittingly targeted by those seeking to defraud the DWP. In effect, therefore, this amendment broadens the scope of fraud prevention, ensuring that any misuse of benefits by third parties is identified, and that includes those who are acting as a proxy. We argue that this is, in effect, a tidying-up amendment to enhance the measures in the Bill and to ensure that the legislation does not create loopholes before it has come into force.

We have also tabled amendment 25, as we believe that we should add housing benefit to the list of benefits that fall within scope. If we are serious about tackling fraud and error, we should want to expand the relevant benefits as far as we can, while ensuring that the cost-benefit analysis remains proportionate. Although housing benefit is in the process of being replaced as part of the roll-out of universal credit, as of November 2024, 2 million claimants of traditional housing benefit remain. New claims, as Members will know, can still be made for housing benefit by people who have reached state pension age or who live in supported, sheltered or temporary housing. Receipt of benefit is dependent on household income, including savings and capital, among other criteria.

Amendment 25 provides a focus in our debate on economic impact and cost effectiveness. The current accredited official statistics, published by DWP in its report, “Fraud and error in the benefit system”, show:

“The Housing Benefit overpayment rate was 6.3% (£980m) in FYE 2024, compared with 5.7% (£860m) in FYE 2023… Overpayments due to Fraud were 3.9% (£600m) in FYE 2024, compared with 3.5% (£530m) in FYE 2023.”

That represents £600 million of lost taxpayer money. The report continues:

“Under-declaration of financial assets (Capital) was the main reason for the changes across total Housing Benefit overpayments”—

I know that came up quite a lot during our evidence sessions. The report also states that at a total level, capital fraud

“increased to 2.2% in FYE 2024, compared with 1.3% in FYE 2023.”

We know that that is a significant problem. Indeed, as we heard in evidence from the Minister about capital fraud, the amount is eye-watering. Often this is about error, but equally, it does still mean that people fall out of scope for receiving benefits. That increase is statistically significant and highlights why we believe that housing benefit should be brought within the scope of the Bill, if the Government are truly serious about tackling welfare fraud and error.

--- Later in debate ---

Finally, amendment 30, in the name of the hon. Member for Brighton Pavilion, in effect seeks to secure the same outcome as amendment 29. Therefore, our concerns remain the same. The change would remove the flexibility to reflect future benefit changes and deal with developing trends in other benefit fraud and error. I will leave my comments there. We will see how the debate goes before we decide whether to press any amendments to a vote.

[Steve Darling]

I reflect to the hon. Member for South West Devon that accusing somebody of being short-sighted when they have a guide dog with them is a bit of a juxtaposition, but it was taken well.

The Liberal Democrats and I have grave concerns about this Orwellian approach to mass surveillance, and that the proposals are overcooked. I go back to my concerns that the DWP is, sadly, not fit for purpose. One has to look only at the significant delays throughout the system and the challenges within that Department, and yet we are looking at granting it massive, extremely significant powers. The DWP already has the ability to intervene where it suspects fraud, and we welcome that where there is reasonable suspicion, but to actually subject people to this approach is outrageous. Some of the evidence I heard when I consulted people from disability groups is that people with mental health issues may be fearful. They may think, “Because the Government Minister is looking in my bank account, I can’t afford the nice cheesecake from Waitrose. I can only shop in discounted supermarkets because the Minister is going to be watching what I am doing.”

Turning to our amendments, we have grave concerns that the approach could be the thin end of the Government wedge. We have therefore tabled amendment 29 to put a clear restriction on the proposals, ensuring that what is before us is set in stone rather than allowing for mission creep.

On amendment 30, we know from the debacle around the winter fuel allowance that getting pensioners to step up to the mark and claim pension credit has been a real challenge. I also draw the Minister’s attention to the fact that pension credit is an area where there are significantly lower levels of fraud. There are already low levels of fraud generally throughout the benefits system, but the pension credit levels are extremely small.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

I think the Conservative spokesperson just gave the figure of £500 million in pension credit fraud and error last year. Is the Lib Dem spokesperson saying that that is not very much?

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[Steve Darling]

We need to make sure that there is a level of proportionality. On pension credit, proportionality suggests to me that pensioners are often extremely private people, and they will fear that the Minister will be looking through their shopping bills. Although there may be reassurances, this is still the presentation of what parts of our society may see as a Big Brother state. We have concerns about the impact, and by excluding pension credit specifically through amendment 30, we would serve some of the most vulnerable people in our society in the best way we can.

[Siân Berry]

It is a pleasure to serve under you again, Sir Jeremy. I rise to speak against clause 74 and schedule 3, and to support my amendment 35, which I intend to push to a vote. I also support the two Liberal Democrat amendments, and will vote for those if they are pressed.

In short, I am opposed to clause 74 and schedule 3 standing part of the Bill, and to the related powers that apply to the eligibility verification process. These powers do nothing less than bring in a system of disproportionate, mass financial surveillance of millions of people who have done nothing wrong and are not suspected of any wrongdoing. It is of profound concern that these powers are likely to be used at scale to monitor the private bank accounts of people who need the support of society and have done absolutely nothing to arouse suspicion.

One of the changes that people wanted to see when they voted out the last Government was a welfare system that treats people with dignity and respect. Sadly and disappointingly, these parts of the Bill are based instead on blame and suspicion of people in need of help, when the bigger issue is unclaimed and underclaimed benefits due to a lack of awareness, complexity in the system and stigma. I asked the Minister in the evidence session whether he would be using these new powers to also help alert people who are underclaiming benefits to what they may be due. The answer was not very clear, but I think it was no, because only the possibility of overpayments and reclaiming those was discussed.

I do not want to tweak these proposals—I want to prevent these two parts of the Bill becoming law at all, because they would allow the DWP to require banks and other financial institutions to provide information about claimants of universal credit, pension credit and employment support allowance in order to interrogate their claims of eligibility and entitlement. I assume that every claim would be examined over time. That means a huge new invasion of citizens’ privacy.

Currently, if someone is out on the street, the police can only use suspicion-less stop and search on them if they have a section 60 notice in place, which involves setting out a clear reason, identifying a small area and identifying a fixed time for which that would take place. The Bill effectively puts a section 60 notice around every single person who claims these benefits. These people include, disproportionately, people from protected groups—disabled people and older people. This is a real problem; it is discriminatory, unsettling and unfair.

On the numbers, around 7 million people receive universal credit, around 1.4 million pensioners receive pension credit, and around 1.5 million get help from employment support allowance. These powers will drag nearly 10 million people directly into a net of intrusive financial surveillance, as well as those appointed to receive benefits on their behalf, including parents, carers, appointed people and landlords. Given that several of these benefits have eligibility requirements based on household income, we are bringing in family members as well. Unsurprisingly, these measures are of huge concern to disability rights, poverty, pension and privacy groups, who are united in their opposition to them.

Ideally, I want to see everything struck out, but amendment 35 to schedule 3 would at least mean that more benefits could not be added to the list of relevant benefits by regulations. It would leave in place the ability for Ministers to remove benefits through regulations in future.

The hon. Member for Oldham East and Saddleworth (Debbie Abrahams), Chair of the Work and Pensions Committee, set out on Second Reading the risk of damaging trust in and engagement with the DWP for millions of people who might otherwise not claim benefits. I raise that problem because I believe that underclaiming is as much of a problem as fraud and error and should be getting as much attention.

On proportionality, it is incumbent on Ministers to come up with a new, more proportionate way to address fraud, where there is reasonable suspicion. I am not against the issue being looked at, but I add that administrative errors are 8% of the problem. They are caused by the DWP’s mistakes and should not result in a need to treat as suspects people who might make errors in their claims due to lack of clarity in or awareness of requirements.

It is absolutely right that fraudulent uses of public money are dealt with robustly. To that end, the Government already have significant powers to review the bank statements of welfare fraud suspects. Ministers did not hear me complaining at the new powers to require more information when there is a reasonable suspicion of somebody having committed fraud. This eligibility requirement goes way, way beyond.

There are automated decision-making powers coming through in another Bill, which impacts on this Bill and the assurances we have received from Ministers. They say that no automated decisions will be made based on the eligibility verification data alone and that, where potential fraud is identified against those eligibility indicators, cases will be referred to the DWP for further consideration and investigation. However, assurances by the DWP that a human will always be involved in the decision whether to investigate an individual are not set out in the legislation, and the scale and nature of any human input is very unclear, despite its having been promised.

Furthermore, as we heard in oral evidence, while assurances about human involvement are also provided for under current data protection law, the Data (Use and Access) Bill currently making its way through Parliament will remove any proper prohibitions on automated decision making. Those must be included in this legislation, in the code of practice or in the regulations. I believe it is for the Government to produce urgent amendments to solve the problem.

--- Later in debate ---

[Andrew Western]

They would be, were the powers entirely unique. However, as we heard in the evidence of the representative from HMRC, there is a long-standing power—introduced, I believe, in the Finance Act 2011—for HMRC to routinely and regularly check all interest-bearing bank accounts in the country. I have not looked at the cohort of people who are fortunate enough to have interest-bearing bank accounts, nor have I ever been in such a position myself, so I plead ignorance here. However, I suspect that there is not the same over-representation of vulnerable groups.

The important point—this comes back to the broader point around automated decision making, AI and so on that the hon. Member for Brighton Pavilion made—is that we are looking to better improve our access to data, not take decisions as a direct result of the information we have received. Indeed, we have built in human decision making at every stage of the five areas where we are taking new or updated powers on the DWP side of the Bill.

[Steve Darling]

I referred to the proposals as Orwellian, and my concern goes back to “Animal Farm” where the notice was amended to read:

“All animals are equal, but some animals are more equal than others”.

We have this perverse situation with the legislation where for some sections of society it is appropriate for the Government to use AI to go through their bank accounts, and for other sections of society it is not appropriate to use AI to go through people’s bank accounts. How does that lead to a society that is cogent and speaks together? Or is this just sowing division around our communities?

[Andrew Western]

It is incredibly important to reiterate for anybody who may be watching our proceedings that the Government will not be going through anybody’s bank accounts. We will be asking banks and financial institutions to do that, and to share information with us only where there is a potential breach of eligibility verification. The information that is shared with us will be specifically related to identifying the bank account and the potential breach of eligibility. It will not be, for instance, special category data or transactional data.

To return to my point about the use of AI and automated decision making, when a flag comes back on the eligibility verification measure, a potential breach of eligibility will immediately be passed to a human investigator to take that forward. It will not at any point trigger a penalty or a prosecution for fraud without a human intervening and, as they do at present, establishing that there is potentially fraudulent activity or, indeed, an error that warrants a reclamation of overpayment.

Amendment 30 seeks to stop the DWP from being able to use the eligibility verification power in respect of pension credit. We have had quite the debate about that already, and the hon. Member for South West Devon made many of the points that I would have made.

--- Later in debate ---

[Andrew Western]

I am happy to confirm that the situation is as the hon. Lady articulated. Only someone in receipt of one of the three benefits initially in scope would face use of the eligibility verification measure.

[Steve Darling]

Will the Minister confirm whether, once the Bill has passed, he could choose to increase the scope to include all pensioners?

[Andrew Western]

That brings me to amendment 25, which seeks to include housing benefit, and to later amendments on the affirmative procedure regulations that we propose for being able to bring other benefits in scope. We would need to do that to reflect the changing nature of fraud and the fact that fraudsters, unfortunately, change their behaviour and the benefits they target depending on the safeguards in place and the extent to which they are effective. Therefore the answer to the question is yes, and I will say more on that when we come to the specific amendments in that space.

Draft Mesothelioma Lump Sum Payments (Conditions and Amounts) (Amendment) Regulations 2025 Draft Pneumoconiosis etc. (Workers’ Compensation) (Payment of Claims) (Amendment) Regulations 2025

Steve Darling Excerpts

Wednesday 12th February 2025 General Committees

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I concur with what the hon. Member for Gordon and Buchan, my colleague to my right—in more ways than one—shared just now.

Social Security Benefits

Steve Darling Excerpts

Tuesday 4th February 2025 Commons Chamber

[Danny Kruger]

I am grateful for the opportunity. We had a whole series of plans that were sadly interrupted by the general election result, and I will come on in a moment to some of the suggestions I have for where the Government might go.

[Steve Darling (Torbay) (LD)]

The hon. Gentleman was talking about incentivising people into work. In my surgeries in Torbay, I find that an awful lot of people are off sick with hip problems or mental health challenges, and the challenge people have in getting back into work is the broken health system that was left by the previous Conservative Government. I hope the new Government will drive harder on fixing the system, because many people on benefits are keen to get back into work; they are just unfit for work.

[Danny Kruger]

The hon. Gentleman reflects the experience that many of us have had in our surgeries. Nevertheless, I do not think that health reform on its own will do the job. As I mentioned, the House of Lords Economic Affairs Committee has looked into the matter and reported last week, pointing out that the increase in welfare claims cannot be attributed to longer waiting lists or, indeed, to worsening health conditions. The welfare problem is outstripping the problems we see in the nation’s health, so we have to do more in the DWP. We wait with bated breath to see some movement on that front.

In fact, it was in this debate last year when we were uprating benefits that the hon. Member for Birkenhead (Alison McGovern), now a ministerial colleague of the right hon. Member for East Ham, said that, “Labour has a plan”. That was a year ago. Seven months ago, Labour won the election. She did not say that the plan was oven-ready, but she implied it. I know the Minister says that the delay is because of a court case that happened two weeks ago, but I do not quite understand how that explains the delay that has been going on for seven months.

Here we are approving a measure that will increase expenditure by nearly £7 billion, as the right hon. Gentleman said, and we have no idea how the bill will be brought down over time. But after much head scratching in the DWP—and, we are told, people pulling their hair out in No. 10—we are getting closer to the big reveal. We hear exciting hints in the media that the Government might scrap the limited capacity for work category altogether, scrap the work capability assessment, merge employment and support allowance into the personal independence payment system, or require people on sickness benefits to engage with work coaches. I am encouraged by all that pitch-rolling.

If the Government are softening up their Back Benchers for serious reform, I applaud them for it, but I will believe it when I see it, because Labour opposed every step towards tougher conditions, more assessments and more incentives to work. They opposed reforms that we were introducing to the fit note system. In fact, I see from a written answer to a question in the other place that the Government say they have no plans to reform the fit note system, which I regret. I wonder whether the Minister could help clarify if that is the case.

On universal credit, it appears that the sinner repenteth, or sort of repenteth. The Government are on some kind of journey. In the last Parliament, they said they would scrap universal credit, then they said they would replace it, and now, as we have heard, they are reviewing it. I am glad to hear that, although the right hon. Gentleman just said that they are reviewing it over the course of this year, so that seems to be unrelated to the Green Paper process, which we are expecting in the spring. I would like to understand how those two processes are aligned.

Rather than scrapping, replacing or reviewing universal credit, I invite the Government simply to use it. It is a flexible system, as we saw during the pandemic, and it works; it just needs to be adapted to the new challenge. In conclusion, let me make a few suggestions for the right hon. Gentleman to consider as he prepares his Green Paper and his universal credit review.

The back to work plan that we announced before the general election would have got 1.1 million people into work, using more support and tougher conditions—“more support” meaning more of the WorkWell pilots that my hon. Friend the Member for Faversham and Mid Kent (Helen Whately) introduced. I was glad to hear the Secretary of State praising those pilots yesterday, although sadly without attribution. In our view, the work capability assessment should be face to face, and it should be asset-based, not deficit-based; it should be asking what a claimant can do, not what they cannot do. The claimant should begin the journey of recovery—the journey back towards work—then and there. Rather than budgeting for ever higher welfare, as we are doing today, we should be investing in a universal support system to run alongside universal credit.

We also need tougher conditions. We simply cannot have people with a bad back or anxiety being signed off sick for the rest of their lives; they need to know that we believe in them, and that believing in them means having high expectations of them. In exchange for benefits paid for by working people, claimants should take active steps, when they can, to address their physical and mental health needs, and they should work meaningfully on their own health and wellbeing. That will not look the same for everyone and it must not be a tick-box exercise. That is why we need the help of civil society, not just coaches and therapists, providing the human touch and the range of help and opportunities that people need.

Most of all, we need a clear message to go out from the Government that unless a person is so severely disabled or ill that they genuinely can never work at all, they will not have a life on benefits. That clear message, enacted through reform that the right hon. Gentleman’s Department must bring forward urgently, is the only way to get our exorbitant welfare bills under control, and to get our workforce and our economy moving again.

--- Later in debate ---

[Steve Darling (Torbay) (LD)]

I would like to acknowledge the very sobering and comprehensive speech given by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams). This is disturbing, and one would hope that our DWP, and our Government as a whole, would take a trauma-informed approach to dealing with our communities, as I believe that would stand us in good stead.

I broadly welcome the upratings in the proposals before us for both benefits and pensions, but I will focus first on pensions. Sadly, the Labour Government inherited a system under which, for the last 10 years, we have seen an increase in pensioner poverty. Two million pensioners remain in poverty, and 1 million are on the edge of poverty, and one would have hoped that a Labour Government wanting to cut the number in half and promoting social justice would have driven such an agenda harder in their first seven months in power. The cut to the winter fuel allowance has exacerbated this situation. The hon. Member for East Wiltshire (Danny Kruger) highlighted the backlogs and rightly said that they are totally unacceptable. The reality is that we are seeing pensioner poverty.

Again, we know that women are more likely to be victims of poverty, yet the WASPI women have in effect been victims of a decision of this Government. It was really pleasing that the Secretary of State for Work and Pensions welcomed the report, acknowledged it and apologised, but, sadly, she did not actually action the report. That gives me great displeasure, as well as many other people across the United Kingdom.

In evidence to the Work and Pensions Committee, the ombudsman suggested that there is usually a bit of a conversation between the ombudsman and the Government about what an acceptable system or approach to compensation would be. Sadly, however, that never happened as far as the WASPI women are concerned, which is disturbing, and I want to understand why. Why was there the breakdown in communication between the ombudsman and the previous Conservative Government? I am looking to explore that with the ombudsman in another way.

On pensions, I would also like to highlight the housing issues. I served my community for 30 years as a councillor, and I am therefore very alive to some of the challenges people face. Housing is a massive issue, and it is disturbing that, when reflecting on pensions, the cost of housing is rarely taken into account. In 1979, 35% of our housing stock was social rented housing. That figure is now down to 17% across the United Kingdom, and in my constituency of Torbay it is as low as 7%. This means that people, whether pensioners or those on other benefits, in constituencies such as mine where there is a lack of social rented housing are particularly hard-hit by that lack of support; they will have to take money away from putting food on the table in order to pay the rent. It is therefore disappointing that the local housing allowance has not been enhanced in this round. Almost 1 million children across the United Kingdom will be living in households that have this gap between their benefits and the cost of their accommodation and they will be driven even further into poverty.

On universal credit, colleagues have already mentioned the recent Joseph Rowntree Foundation report which highlighted that couples face a £55 a week gap between covering the basics and what they actually receive. That is a little over £2,800 a year, so people are being driven even deeper into poverty just around the basics on their universal credit offer.

Finally, on the carer’s allowance scandal, while we Liberal Democrats welcome the Government’s engagement and the review that is taking place, unanswered questions remain. We need to make sure this is addressed at pace to support people, because 136,000 people—the equivalent of the population of West Bromwich—are affected, owing £250 million. They fell foul of a system where people only need to earn £1 more a week and they do not then owe £52, they owe £4,200—tapers need to be implemented.

One of the real challenges we face is that the DWP service is, sadly, broken. It is not fit for purpose and needs redesigning. I have nothing but utter respect for the Secretary of State on this issue, and instead of driving new agendas we need to lift the bonnet and redesign the system, get it for purpose and, most importantly, co-design it with people who are disabled or benefit users, so that it can actually support them.

[Mr Lee Dillon (Newbury) (LD)]

My hon. Friend is making a powerful speech about those most in need of benefits and the difference they can make. He spoke about the WASPI women and about children in poverty, but does he agree that veterans could also be helped out more by the DWP, such as by the Government backing the Royal British Legion “Credit their Service” campaign to change legislation so that military compensation is not classed as income when calculating means-tested benefits? Does my hon. Gentleman agree that that group would benefit from such a change?

[Steve Darling]

My hon. Friend is right to highlight that. My hon. Friend the Member for Eastbourne (Josh Babarinde) and I are awaiting a meeting with the Minister to explore that very issue and the RBL’s campaign.

To conclude, I lived through a world of broken children’s services in Torbay, but we rolled our sleeves up, sorted it out and moved from failing to good within two years by getting the right people in place, making sure systems were sorted out and driving culture change. We need that co-design with people who use the system so we can get the DWP sorted as well.

Public Authorities (Fraud, Error and Recovery) Bill

Steve Darling Excerpts

2nd reading
Monday 3rd February 2025 Commons Chamber

[Steve Darling (Torbay) (LD)]

I thank the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) for laying out very concisely some of the challenges in ensuring that the Bill does the right thing without going too far and breaking the things that people want fixed.

Clearly, defrauding the benefits system is wrong. One need only reflect on the level of disinvestment in many of our public services by the previous Government to note how that can bleed the system dry. I reflect on my own Torbay constituency, where the hospital tower block has scaffolding around it not because it is under repair, but to prevent bits of concrete from falling and killing people. I reflect on the lack of investment in our schools; the challenges with reinforced autoclaved aerated concrete mean that the necessary capital programme will not happen for the next six years. I reflect on the lack of investment in our police services, which means that the number of sworn officers has massively reduced. Those are serious issues that affect us following the lack of investment under the previous Government.

The Conservative Government were asleep at the wheel during the covid pandemic, as the Secretary of State alluded to in clear terms. Businesspeople in Torbay told me that they felt Rishi Sunak was—

[Madam Deputy Speaker]

Order. I remind the hon. Gentleman that we refer to Members not by name but by constituency. I think he was referring to the right hon. Member for Richmond and Northallerton.

[Steve Darling]

My apologies, Madam Deputy Speaker. Those businesspeople felt that the then Chancellor of the Exchequer was filling carrier bags full of £50 notes and placing them around towns, expecting people just to pick them up, so low were the safeguards for a number of the covid support schemes.

I will move on to an item that has already been covered by a number of colleagues: the carers scandal. More than 136,000 people—equivalent to the population of West Bromwich—have been left with liabilities of £250 million that they are extremely worried about. The Government have quite rightly commissioned a review, but it is due to report not in the near future but next summer. I challenge the Minister: why not wait for that review’s findings before we push hard on these proposals, so that we can ensure that lessons are learned? We want fraud to be tackled, but we want it done in the right way. There have been just seven working days between this Bill’s First Reading and its Second Reading. Large tracts of the safeguards and the rails around it are out for consultation as we speak, which we need if we are to understand what safeguards there will be to protect our communities.

Colleagues have already mentioned AI, and they are right to have done so, because there are real concerns about a lack of transparency—[Interruption.] Sorry, Jennie is joining in; she is having a dream about rabbits. As Liberal Democrats have already highlighted, we do not know what safeguards there will be around the use of AI. How can we back the Bill until we know what safeguards will exist? I would like to reflect on how the Bill can contain those appropriate safeguards. Sadly, as the hon. Member for Oldham East and Saddleworth highlighted, the DWP is a broken Department.

[Robin Swann (South Antrim) (UUP)]

Bearing in mind the money that has been claimed back from unpaid carers and our concerns about the DWP, does the hon. Member agree that this legislation would see more unpaid carers or their like come under far harder and harsher penalties?

[Steve Darling]

I welcome the hon. Member’s intervention; he has highlighted a serious issue, and he is spot on. One has only to reflect on the significant backlog, with 90,000 people waiting for their pension to be reviewed as part of the winter fuel allowance issues—that is a massive backlog.

Access to Work, which is meant to support people with disabilities into work, is sadly another broken system. Quite often, those wishing to receive support find that job offers are withdrawn because their work package has not been pulled together in time. An academic survey has highlighted that over three years, sadly, almost 600 people committed suicide around the management of their support from the DWP. I suggest to the Secretary of State that, while one understands the aspirations of this Bill, it is far too much of a Big Brother Bill. It is far too much of a snoopers charter, and I suggest to the Government that they withdraw it.

Oral Answers to Questions

Steve Darling Excerpts

Monday 3rd February 2025 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Steve Darling (Torbay) (LD)]

Children in poverty in Torbay make up 23% of our population but 100% of our future. Barnardo’s recently highlighted that the most powerful tool in the Government’s toolbox to tackle child poverty is ending the two-child cap. Only last week, the annual poverty report by the Joseph Rowntree Foundation came to the same conclusion. When will the Minister come to that same conclusion and end the two-child cap?

[Alison McGovern]

I thank the hon. Gentleman for his question and for coming along to our parliamentary engagement session last week, which I hope he agrees was a productive update for everybody. As I just mentioned, I watched from the Opposition Benches as various policies, including the one he mentions, were introduced. We can see their consequences all around us. We cannot promise to do anything that we cannot pay for, but we are determined to have a child poverty strategy that works.

--- Later in debate ---

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Steve Darling (Torbay) (LD)]

I was pleased to hear that Labour councillors on Hull city council have voted to condemn the Government’s shameful decision not to compensate WASPI women. Has that given the Minister pause for thought?

[The Parliamentary Under-Secretary of State for Work and Pensions (Torsten Bell)]

I recognise the strength of feeling on this issue right across the House. We carefully considered the ombudsman’s report, but as the hon. Member knows, we do not think it is fair to provide compensation costing up to £10 billion when 90% of affected pensioners knew that the state pension age was rising, and the evidence shows that letters being sent earlier would have made little difference.

Women’s Changed State Pension Age: Compensation

Steve Darling Excerpts

Wednesday 15th January 2025 Westminster Hall

[Steve Darling (Torbay) (LD)]

I congratulate the right hon. Member South Holland and the Deepings (Sir John Hayes) on securing this really important debate.

When one reflects on there being more WASPI women in the United Kingdom than the population of Wales, it demonstrates how this is a massive issue for this United Kingdom. In my constituency there are 6,930 WASPI women, and there are a similar number in Newton Abbot over the border. There are 7,400 in South Devon. Yet in the Prime Minister’s constituency there are fewer than 4,000. I smell a rat. I will give credit to those Labour Members who are here but, just as with the winter fuel payments, we can see that sadly certain members of the Government are choosing, because of the arithmetic around pensioners, to make decisions of an ill-advised nature like this.

In her statement on WASPI women, the Secretary of State talked of the fact that the decision was made by a previous Government, and that that was what WASPI women were really concerned about. The reality is—I hope the Minister will address this; other colleagues have raised it—that the report was about the communications and the impact on women. It was not about a previous decision. So that is what the Government should be addressing.

[Steff Aquarone (North Norfolk) (LD)]

On that point, my constituent Lauraine took early retirement from the NHS in 2014 to care for her husband. She believed that her state pension would kick in in 2015 and support her in her caring responsibilities, since she never received any notification from the DWP to tell her that it would not. She feels angry and let down. Does my hon. Friend agree that it is shocking that the Government can hear testimonies such as Lauraine’s and still refuse the fair compensation that these women deserve?

[Steve Darling]

Yes, and my hon. Friend also reminds me of Marilyn in my constituency, who suffered a significant illness and would have benefited from compensation—as would Pam, who cared for two terminally-ill family members. I totally agree with my hon. Friend.

What a baptism of fire this is for the new Minister, but we need him to address the real issues. He must not be wilfully blind to the recommendations of the ombudsman. I would also welcome an explanation why an answer to my named day question, which was named yesterday, remains outstanding.

[Dr Andrew Murrison (in the Chair)]

Commendably brief, if I may say so. I call the Opposition spokesman.

Adoptive Parents: Financial Support

Steve Darling Excerpts

Tuesday 14th January 2025 Westminster Hall

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairwomanship, Ms Furniss. I congratulate my hon. Friend the Member for Hazel Grove (Lisa Smart) on securing this really important debate.

I highlight to the Minister the adoption support fund; I would be grateful if he could talk about any long-term plans the Government may have to bake that into Government proposals, because currently it is a hand-to-mouth existence. A week after I got elected, a resident raised with me their concerns. I wrote to the Minister on this issue some months ago, but I wonder whether the Government’s thoughts on the matter have changed.

I speak as somebody who was myself adopted into a very loving family in the 1970s, with Eric and Penny. Eric was self-employed. He was not a toolmaker; he was a lorry driver—a haulage contractor if we were trying to be social climbers. The reality is that it was a really loving family. Of course, as a self-employed haulage contractor, Eric would have benefited from the proposals we heard about from my hon. Friend the Member for Hazel Grove.

The world of adoption and fostering has changed massively. The babe in arms is often not what one gets through adoption or fostering, but children who have had complex, challenging lives and will try to test parents. I have a good friend in Torquay whose child tests him regularly. The child believes that daddy is a monster because his previous daddy was, sadly, a monster to him. It is really challenging for that adoptive family to face that.

I also welcome the comments about Home for Good, which is a service that I brought in to Torbay when I was leader of the local authority. It looks at driving adoption through those with faith and using churches to support those with faith. There is a significant need out there.

Even for purely cynical reasons, I encourage the Minister to reflect on how important it is to support self-employed people so that we enhance the pool, as one only needs to look at the cost of social care to councils up and down the country when a foster placement or adoption—as quite often fostering does turn into adoption—cannot be found. The private sector is sadly making significant profits from that.

Although I am pleased that the Government are making progress in those areas, the best way to make progress is to look at places such as Leeds, which I visited once upon a time, and now also Torbay, becoming UNICEF child friendly communities. That will drive a positive culture of engagement and support for our young people throughout the United Kingdom. I hope that the Minister will look kindly on the proposals from my hon. Friend the Member for Hazel Grove.