Public Authorities (Fraud, Error and Recovery) Bill

Debate between Luke Evans and Rebecca Smith

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

[Dr Luke Evans]

In their response to my question about sickfluencers, the Government said that relevant legislation is already in place. If that is the case, how many convictions have there been under that legislation? We could infer from that number whether or not the system is working and what we need to do. My suspicion is that we need these measures to be able to hold people to account.

[Rebecca Smith]

I echo my hon. Friend’s concern that the existing powers are not being used enough. I ask the Minister to give us further information on how those powers are being used and an assurance that they will be used further should our new clauses be unsuccessful.

We believe that creating a specific offence to target such online fraud would send the clear message to sickfluencers that what they are doing is not only morally wrong but illegal—something that clear gives them no alternative than to realise that they will be caught. If the Government continue to oppose our amendments because they believe the powers already exist to tackle such crime, I would be grateful if the Minister set out, at the very least, how the Government will ensure that that legislation is used to the fullest, particularly with regard to the DWP, given that Government amendments 75 and 76 refer to the PFSA specifically. We are keen to see how those powers can be used fully used as the deterrent we need to tackle DWP claims. I want to know that, after today’s debate and vote, sickfluencers will be left in no doubt that the full weight of the law will be used against them, as they actively defraud the state.

Our new clause 9 is on powers of arrest. We welcome measures in the Bill—first announced by the previous Government—to give DWP investigators greater powers to aid with their investigations, such as search and seizure, and there must be appropriate safeguards around that. This will bring benefit fraud investigations into line with tax fraud investigations in His Majesty’s Revenue and Customs, which is very welcome, but we want to go further and address other shortfalls in the DWP powers. New clause 9 would add the power of arrest to the powers given to DWP investigators and resolve the seemingly illogical current position: the Government want to give DWP investigators the power to enter and search a premises, seize, retain and dispose of material, obtain sensible material and use reasonable force, but not to arrest someone if the evidence shows that it is necessary.

In Committee, the Minister highlighted that the police would be able to carry out the arrest function on behalf of the DWP should it ever be necessary, but we question whether that is a sustainable position and believe that our new clause would ensure we do not place an additional burden on the police. This is not without precedent and would bring the DWP into line with the approach taken to serious and organised crime across Government, such as at HMRC and the Gangmasters and Labour Abuse Authority.

Our new clause 10 is on liability orders, because we are concerned about the seizure of assets. We want to ensure that the DWP does everything it can to recover funds fraudulently claimed, even when that money is no longer sitting in a bank account. It cannot be right that someone can use that money to buy expensive cars, flat-screen TVs or other luxury assets, which the state cannot then recover from them. Our new clause 10 would give the Secretary of State powers to apply to the courts to seize assets where someone has been found guilty of fraud and the funds have not been recovered in order to repay the state. In a similar vein to our sickfluencers new clause, we believe these additions are needed to send the strongest message to those who are knowingly defrauding the system that they will be caught and will have to pay.

New clause 10 does not just give powers to seize assets to the Secretary of State; it says that she must use them. The DWP has said that it can already do this, but we know through written parliamentary questions that those powers have not been used in the last five years, albeit the DWP could make use of the Proceeds of Crime Act 2002. We believe there must be an explicit expectation that assets will be seized, and we need new clause 10 to ensure this is achieved.