Public Authorities (Fraud, Error and Recovery) Bill 2025-04-29

Proposes New Clause 17, which revises amendments to the Social Security Administration Act 1992 made by clause 72 to ensure that powers of Scottish Ministers remain unchanged. This includes updating sections related to authorizations for investigators and requiring information notices from individuals.

Brought up the new clauses and read them the First time, including New Clause 18-20, which are government amendments concerning consequential amendments to the Social Security Fraud Act 2001, devolved benefits, and powers of Scottish Ministers.

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The MP questioned whether the Bill would effectively recover losses from fraud, noting that only a tiny 1.8% of losses might be recovered, but the Minister responded by highlighting broader savings expected to reach £9.6 billion.

The Labour MP sought assurance that the Bill would not contravene the Human Rights Act 1998, to which the Minister responded by confirming compliance with all legal obligations and asserting the necessity of tackling those who defraud public services.

The MP raised concerns about 'sickfluencers' using buzzwords to guide individuals in committing benefit fraud. The Minister acknowledged the issue but stated that existing legislation, such as the Fraud Act 2006 and Serious Crime Act 2007, provides sufficient powers.

The MP urged for more specific legislation targeting 'sickfluencers', in line with Opposition new clauses. The Minister responded by confirming ongoing work to address the issue, including collaboration with social media companies to combat fraudulent content.

Expressed concern about transparency in relation to AI and algorithms under the Bill, seeking assurance that the most vulnerable in society are not unfairly affected.

Asked whether new clause 13 would be accepted by the Minister, which requires an annual report on the amount of money recovered through fraud recovery processes. The speaker also requested clarification regarding the Scottish Government’s reporting requirements for benefit fraud.

Inquired about the requirement for the DWP to adopt recommendations from an annual report by the independent person on new powers usage, and asked if there would be a commitment to explaining why any recommendations are not adopted.

Asked the Minister about potential breaches of the Human Rights Act, specifically articles 8 (right to privacy) and 14 (prohibition of discrimination). Inquired whether legal advice on this matter would be made available to the House.

Minister who clarified that the Bill does not breach the Human Rights Act. Emphasised ongoing engagement with industry and stakeholders. Rejected amendments 2 and 5 from Steve Darling, arguing that they undermine the eligibility verification measure. Highlighted savings of £940 million over five years due to these measures. Defended debt recovery powers by stating they are necessary for better data sharing between sectors.

Echoed the Minister's comments about constructive work in the Bill Committee. Stated that fraud is unacceptable and can be costly to taxpayers, especially impacting vulnerable people. Raised concerns over rushed legislation, proposing amendments to address gaps in deterrents for potential fraudsters.

The MP questions the effectiveness of existing legislation against sickfluencers, calling for more information on convictions under relevant laws to determine whether new measures are necessary.

The MP discusses the need for specific offences targeting online fraud and longer sentences. She raises concerns about existing powers being insufficiently used by the DWP, advocating for greater use of legal provisions to deter such activities.

The MP highlights the inconsistency between Labour's stance on benefit fraud and its previous record in office. He questions whether longer sentences should also apply to other areas of Government, such as covid corruption.

The MP supports the Bill's aim to crack down on benefit fraud and acknowledges its importance in addressing £7.1 million worth of fraudulent claims in Wales alone. She appreciates the Government amendments and the progress made during the Public Bill Committee.

Concerned about extending DWP powers before reviewing the carer’s allowance overpayments scandal. Believes the Bill may not impact carers as much as suggested but shares reservations.

Explores challenges of the Bill, focusing on covid crisis fraud and the need for proportionate measures. Expresses concern about mass surveillance, lowering bar for taking money from bank accounts, and impact on vulnerable people.

Supports amendments aimed at protecting privacy and rights of individuals while supporting the Government's aim to recover public money from fraudsters. Raises concerns about the poorest in society being most affected by the legislation.

Grateful for amendments addressing undermining of presumption of innocence, stressing stress and anxiety raised among vulnerable people due to current Bill drafting.

Agrees with the lead MP, stating that the legislation contributes to a hostile environment for benefit claimants. Supports opposing measures proposed by the Conservative party.

Asks if innocent disabled people will be affected by these measures and suggests they might not be impacted due to their non-involvement in fraudulent activities.

Points out that with an algorithmic error rate of at least 1%, around 10,000 innocent people could be incorrectly flagged for wrongdoing under the proposed measures.

Expresses concern over the complexity of the current system leading to errors and difficulties in navigating it. Suggests that amendments 10 and 12 should address these issues.

Supports new clause 11 for closer scrutiny of the Bill's impact through pilot schemes, citing concerns over mass financial surveillance and potential infringements on civil liberties. Argues that the proposed measures lack proper testing and analysis.

Declares his intention to support amendment 11 due to concerns about the legislation's negative impact on welfare recipients, particularly in terms of privacy and civil liberties.

Expressed concern about the Bill taking 'huge steps constitutionally, legally and on civil liberties'. He cited that it introduces mass surveillance for the first time in this country and would be challenged on Article 8 of the human rights legislation. Raised issue with lack of codes of conduct promised before introducing the bill.

Warned about the introduction of the Bill without proper codes of conduct and operation, highlighting that it will lead to further discrimination against working-class people claiming benefits. Discussed fears among constituents due to stigma attached to benefit claims and potential errors leading to penalties.

Emphasised the importance of preventing fraud but criticised the Bill for not targeting professional fraudsters effectively, instead penalising innocent claimants. Discussed a case in his constituency where a constituent was overpaid and later sanctioned by the DWP despite winning an appeal.

Spoke against several amendments, arguing that they would hamstring or limit the effectiveness of the Bill. Emphasised the necessity to tackle fraud seriously and highlighted that social security fraud has risen post-covid while financial services sector fraud has fallen.

While welcoming communication between the UK Government and Scottish Government, she supports new clause 1 on carer’s allowance. She is concerned about new clause 21 on sickfluencers due to potential unintended consequences. She also agrees with amendment 11 on suspicion of wrongdoing but criticises mass surveillance under the Bill.

Supports new clauses 8 and 21, arguing they enhance rather than undermine the Bill. New clause 8 would bring DWP in line with other Government bodies regarding arrest warrants for serious fraud against the state, while new clause 21 aims to address social media promotion of fraudulent practices.

Grateful for measures that reduce instances of fraud but concerned about broader powers regarding individual privacy. Supports new clause 23, which would require a report on causes and cost of public sector fraud during the covid-19 pandemic.

Committed to new clause 7, removing official error from punitive measures in the Bill. Criticises the second part of the Bill for treating benefit claimants as suspects rather than citizens through blanket intrusion and surveillance.

Cuts to welfare will affect 6% of the population in Wales, according to Policy in Practice. The Bill adds to that punishment by increasing state financial surveillance of welfare recipients through intrusive measures such as granting access to three months of bank statements and providing police with powers under PACE Act 1984 to enter and search properties. This is causing real anxiety for families like Simon Mead’s, where his daughter receives Personal Independence Payment due to brain cancer effects and his son suffers from psychosis and schizophrenia.

Response to points made about Conservative amendments and new clauses. New clause 12 is not a wrecking amendment but an additional safeguard on cost implications for banks, annual reporting and publication of an antifraud and error technology strategy that would make the Bill even better.

Resists all non-Government amendments. The previous Administration’s work to tackle fraud and error was botched with significant criticism and no safeguards or oversight in place, unlike the current measures. HMRC already receives data on every interest-bearing account in the country, so this measure is not unprecedented.

Minister provided assurances that the proposed data push will not stop social security payments until human investigations have happened. He also addressed amendments and new clauses, particularly those related to driving licences, carer's allowance overpayments, and fraud offences.

Asked the Minister for assurance that no action would be taken to stop social security payments until a human investigation has happened.

Inquired about the publication of pilot scheme results regarding new clause 11 and whether all details have been published in their entirety.

Expressed gratitude to Liz Sayce for her work on reviewing carer’s allowance overpayments and discussed the impact of overpayment recovery on mental health.

Asked several questions about specific amendments but was not given way by the Minister due to time constraints.

This new clause would delay any payments being taken from people who the Government may think owe repayments on Carer’s Allowance until the independent review into Carer’s Allowance overpayments has been published and fully implemented.

Where a person is found guilty of an offence under section 1 or section 11 of the Fraud Act 2006, or the offence at common law of conspiracy to defraud, relating to fraud committed against a public authority and has not paid required penalties or repayments, the Secretary of State must apply for a liability order. This clause also introduces offences for encouraging or assisting others to commit fraud and providing guidance on how to commit such an offence.

Mr. Western made an amendment consequential on Amendment NC17, allowing a DWP authorised investigator in England or Wales to seize items that may be evidence of any offence during warrant searches.

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Every penny of taxpayers’ money lost to fraud or error is wasted. The Government have a responsibility to ensure that every penny raised in taxation is spent well, fair to taxpayers who work hard to earn it. At the heart of our welfare system must be the principle that Government support should go only to those for whom it is intended, undermining public trust when this does not happen. We want taxpayers to get their money back even if fraudsters have already spent it and we are clear both social media platforms helping others commit fraud and allowing fraudsters to keep luxury items after defrauding the system must be tackled. This amendment shows a constructive approach.