Public Authorities (Fraud, Error and Recovery) Bill

Debate between David Davis and Andrew Western

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

[The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)]

It is my pleasure to bring this Bill back to the House. I start by thanking all Members who have made contributions so far, and extend a special thanks to Members of the Bill Committee, some of whom are present today, for their detailed scrutiny.

This Government have an ambitious plan for change. To deliver everything we want to achieve, we must spend taxpayers’ money wisely, which is why we committed in our manifesto not to tolerate fraud or waste anywhere in our public services. The Bill delivers on that commitment. It is part of the biggest crackdown on fraud against the public purse in a generation. Nothing less will do, given the appalling position we inherited.

[David Davis (Goole and Pocklington) (Con)]

Does the Minister recognise that the Government’s own assessment of the effectiveness of the Bill is that it will recover a tiny 1.8% of losses?

[Andrew Western]

The right hon. Gentleman will be aware that we lose a total of £55 billion a year to fraud across the public sector; the Bill will recover £1.5 billion. However, it is part of broader measures—certainly on the Department for Work and Pensions side of the Bill —to save £9.6 billion across the forecast period. By the very nature of the changes that we are making with the Public Sector Fraud Authority, we are designing them to be scalable. As the PSFA becomes more familiar with the work it is undertaking, we think that it will be able to save a significant amount more.

As I was saying, Madam Deputy Speaker, with benefit fraud alone costing £7.4 billion in 2023-24, this is a major problem that is getting worse, not better. We cannot afford to ignore it, and we certainly do not accept it. Fraud against the public sector is not a victimless crime. Our public services, everyone who depends on them, and the taxpayers who fund them, all suffer. And they are increasingly suffering at the hands of fraudsters who use ever more sophisticated techniques to steal money meant for the public good.

The private sector has evolved and adapted its tools and tactics to respond, but, as the scale of the losses that I have just outlined make clear, the same cannot yet be said for the public sector. With this Bill, we will put that right. There will be new powers for the Public Sector Fraud Authority to investigate and deal with public sector fraud outside the tax and social security systems, and new powers for the DWP to modernise its response to fraud and error in the benefit system.

As my right hon. Friend the Secretary of State said on Second Reading, this Bill is tough and it is fair. It is tough on the dodgy business people who try to defraud our public services and it is tough on the criminal gangs and individuals who cheat the benefit system. It is fair to claimants who make genuine mistakes, by helping us to spot and prevent errors earlier. And it is fair to taxpayers, who deserve to know that every single pound of their hard-earned money is being spent wisely.

--- Later in debate ---

[David Davis]

I thank the Minister for giving way, and I hope he will forgive me for waiting till what appears to be the end of his list. When the hon. Member for Blyth and Ashington (Ian Lavery) asked him about the application of the Human Rights Act in this context, he said that the Bill did not breach it, in effect. My advice is a little different, and I waited to hear about his amendments to see whether anything in them changed that. My advice is that suspicionless financial surveillance could breach article 8, which covers the right to privacy, and article 14 on the prohibition of discrimination. Will the Minister make his legal advice on this available to the House? This is incredibly important and it is central to the major criticism of this Bill.

[Andrew Western]

I have already made clear that I am satisfied with the advice I have received. We will make available all the information we are required to make available, but the right hon. Member will appreciate that I am not able to give an undertaking to release all legal advice at this stage. What I can say to him is that I am very confident that there is no breach of article 8 in particular. That has been explored at length as we have gone through the process.

I welcome the ongoing engagement with industry and key stakeholders. We have made a significant effort to engage all interested parties and listen to their views. That feedback has been important in shaping our approach to the Bill to date and will continue to be so as it moves to the other place.