Work and Pensions minister Andrew Western said on Tuesday afternoon that the Government’s amendments to the Public Authorities (Fraud, Error and Recovery) Bill will grant the Department for Work and Pensions (DWP) the power to demand information for fraud investigations.
He told the Commons: « To Government amendments 23 and 24, 39 and 40, these bring into scope the kinds of information necessary for fraud investigations and enable both the Public Sector Fraud Authority (PSFA) and DWP to compel certain types of special procedure material, including banking records or records of employment, in line with the policy intent. »
Mr Western noted that requesting such information is not a new practice for the DWP, which already has existing powers to do so. The amendments will ensure that the PSFA and DWP can compel this information to support fraud investigations while maintaining important exemptions, such as those for excluded material and journalistic material.
He further explained: « Government amendments 48 and 72 provide a clear legislative framework for how DWP and the PSFA will handle and transfer seized evidence to the most appropriate law enforcement agency, including the National Crime Agency or the Serious Fraud Office. These amendments will ensure that evidence is handled by the organisation best equipped to deal with the specific nature of the alleged crime. »
Labour MP for Blyth and Ashington, Ian Lavery, quizzed the government about the new legislation’s compatibility with human rights law, asking: « The Human Rights Act was one of the best acts ever passed by a Labour government. Can the minister assure this House that this Bill in no way contravenes the secrecy part of the Human Rights Act? »
Mr Western said: « I can give (Mr Lavery) that assurance and indeed, that all of our legal obligations have been satisfied as part of the consideration of this Bill. »
During the session earlier on Tuesday, Mr Western spoke to Parliament detailing how Government strategies to counter fraud are not only scalable but promise substantial future savings.
Opening the debate on the remaining stages of the Public Authorities (Fraud, Error and Recovery) Bill, Mr Western said: « This Government has an ambitious plan for change, but to deliver everything we want to achieve, we must spend taxpayers’ money wisely.
« That is why we committed in our manifesto to not tolerate fraud or waste anywhere in our public services. This Bill delivers on that commitment. It is part of the biggest crackdown on fraud against the public purse in a generation. »
However, Tory party stalwart Sir David Davis interjected, questioning the government’s optimism: « Does he not recognise that his own Government’s assessment of the effectiveness of Bill is to recover 1.8% of losses? »
Mr Western responded: « This Bill will recover £1.5 billion but is part, certainly on the DWP side of the Bill, of broader measures to save £9.6 billion across the forecast period. And by the very nature of the changes that we are making with the Public Sector Fraud Authority (PSFA), we are designing those to be scalable, and as they become more familiar with the work that they are undertaking, we think that they will be able to save a significant amount more. »
