Kendall seeks to ease ‘snoopers’ charter’ fears over benefit fraud crackdown

People entitled to assertion benefits person “nothing to interest about” from caller powers designed to curb multibillion-pound payment fraud, according to Liz Kendall.

The Work and Pensions Secretary sought to guarantee MPs implicit the scope of the changes contained successful the Public Authorities (Fraud, Error and Recovery) Bill, amid concerns it could enactment arsenic a “snoopers’ charter”.

The Bill seeks to let the Department for Work and Pensions (DWP) to retrieve wealth straight from fraudsters’ slope accounts and person the powerfulness to get statements from radical they judge person capable currency to wage backmost payment debts, but are refusing to bash so.

Courts could besides suspend fraudsters’ driving licences pursuing an exertion by the DWP, if they beryllium payment debts of much than £1,000 and person ignored repeated requests to wage it back.

The Liberal Democrats asked Ms Kendall to retreat the authorities and warned it is “far excessively overmuch of a Big Brother Bill, it is acold excessively overmuch of a snoopers’ charter”.

Moving the Bill astatine 2nd reading, Ms Kendall said: “This Bill volition assistance present the biggest ever crackdown connected fraud against the nationalist purse, which has present reached an astonishing £55 cardinal a year.

“This includes: fraud against our nationalist services, similar those who maltreatment the taxation system; dishonest companies who usage deception to triumph nationalist contracts and manipulate invoices; and payment fraud by transgression gangs and individuals, which present stands astatine a staggering £7.4 cardinal a year.”

Ms Kendall accused the Conservatives of having “completely failed” to update the powers of the DWP to combat fraud, and described the Bill arsenic “tough” connected those trying to “cheat” the strategy but “fair” to those claimants who marque “genuine mistakes”.

Independent MP Richard Burgon (Leeds East), who mislaid the Labour whip aft rebelling to enactment moves to scrap the two-child payment cap, sought assurances implicit however the powers volition beryllium utilized against individuals.

He welcomed moves to prosecute organised transgression gangs, adding: “I enactment successful a written question to the Department for Work and Pensions asking astir the amounts mislaid successful idiosyncratic independency payments (PIP) fraud and the reply came backmost that successful 2022/23 lone 0.2% complaint … was fraudulently claimed by PIP claimants.

“So volition the Secretary of State hold that whilst they prosecute transgression organised gangs, it’s truly important that we marque wide that determination cannot beryllium immoderate hostile attack to disabled radical claiming PIP oregon disabled radical much wide utilizing the benefits strategy arsenic they merit to.”

Ms Kendall replied: “People who are genuinely entitled to assertion benefits person thing to interest astir from this Bill, but we bash judge that £7.4 cardinal wasted each twelvemonth connected payment fraud indispensable beryllium cracked down on.”

The DWP volition not beryllium capable to entree people's slope accounts oregon look astatine what they are spending, we volition not stock immoderate idiosyncratic accusation with banks.

Liz Kendall

Labour MP Dame Meg Hillier, who chairs the Treasury Committee, sought assurances that radical affected by errors would “not person wealth taken retired of their slope accounts”.

Ms Kendall replied: “I deliberation that the measures introduced successful this Bill volition really assistance america spot and past forestall those errors successful the archetypal spot due to the fact that radical marque genuine mistakes and we bash not privation them physique up errors and indebtedness that they person to repay.”

Ms Kendall said the Information Commissioner’s Office has reviewed the Government’s proposals and is “very wide the measurement present much tightly scopes the accusation that tin and cannot beryllium shared, specifies overmuch much intelligibly those successful the scope of the power, requires a codification of signifier that volition beryllium a statutory codification of signifier earlier measures are taken”.

In further remarks connected the “eligibility verification measure”, Ms Kendall besides said: “The DWP volition not beryllium capable to entree people’s slope accounts oregon look astatine what they are spending, we volition not stock immoderate idiosyncratic accusation with banks.

“Once an alert has been issued, immoderate last determination astir someone’s benefits volition ever beryllium taken by a quality being and the authorities pension volition beryllium excluded from the measure.

“There volition besides beryllium autarkic oversight of this powerfulness connected the look of the Bill, with a request to nutrient reports and laic them earlier Parliament.”

Liberal Democrat enactment and pensions spokesperson Steve Darling said: “Clearly, defrauding the benefits strategy is wrong. One lone has to bespeak connected the level of disinvestment that we’ve seen nether the erstwhile authorities of galore of our nationalist services to cognize however this tin bleed the strategy dry.”

He aboriginal added: “Whilst 1 understands the aspirations of this Bill, it is acold excessively overmuch of a Big Brother Bill, it is acold excessively overmuch of a snoopers’ charter, and I would suggest to the curate that they retreat this Bill.”

Elsewhere successful the Bill, the Public Sector Fraud Authority volition beryllium fixed much powers to tackle Covid-era fraud.

The Conservatives welcomed the Bill successful principle.

Shadow enactment and pensions caput Helen Whately said: “Of people the Government should spell aft fraudsters, but I bash besides interest that immoderate of this powerfulness could beryllium abused and, successful its existent form, it whitethorn breach laws connected the authorities taking someone’s spot without owed process, truthful I would beryllium funny to perceive if experts wrong the ineligible assemblage person been consulted connected the authorities arsenic drafted.”