Andrew Western MP: speeches 2025

Speeches

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  I will make some progress first. There will always be those who, for whatever reason, have been unable to make sufficient provision for their retirement. The benefit system provides a vital safety net for those on low incomes who need support the most. This, of course, includes help through pension credit, worth on average £4,300 a year and which tops up income, as well as unlocking access to additional support and benefits. We know there are still low-income pensioners who are not claiming pension credit but are eligible to do so and we want everyone to get the support to which they are entitled. That is why, since September, we have been running the biggest ever pension take-up campaign. Around 1.4 million pensioner households receive pension credit, but too many have been missing out. Thanks to our campaign, we have seen 235,000 pension credit applications in the 30 weeks since the end of July last year, an 81% increase on the comparable period in 2023-24. That has led to almost 50,000 extra awards over the same period.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  We have never suggested that they would, and the Minister for Pensions addressed that in his opening statement. The savings put forward do take account of that. I have to say that, in accepting that intervention, I was hopeful that, finally, one Tory would come forward with an actual policy in this area—I would say that I am disappointed, but it is only to be expected. Pensioner households who need support the most will continue to get winter fuel payments. We are getting more and more people on to pension credit, so that they can get winter fuel payments and increase their weekly income. This motion calls for an apology. The only people who should be giving an apology to pensioners and to this country are those in the Conservative party, for the mess that they left behind. Question put.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  I am pleased to respond to this important debate. This topic affects millions of pensioners up and down our country. It is one we have debated many times in recent months, and it is right that we do so. Many right hon. and hon. Members have made important contributions that I want to acknowledge. My hon. Friends the Members for North East Derbyshire (Louise Jones), for Gateshead Central and Whickham (Mark Ferguson) and for Wirral West (Matthew Patrick), among others, talked about the inheritance that we as a Government faced when we came into office and the difficult decisions that have arisen as a result, and they were right to do so. I particularly commend my hon. Friend the Member for Makerfield (Josh Simons), who talked about the work he is doing in his community to drive pension credit take-up. I know that Members across the House are doing the same, and I thank them for doing so. As my hon. Friend the Pensions Minister set out earlier, the decisions we have made have not been easy, but we have made sure that we have protected those pensioners who need support the most. Winter fuel payments will continue to be paid to pensioner households in England and Wales with someone receiving pension credit or certain other income-related benefits. They will continue to be worth £200 for eligible households or £300 for eligible households with someone aged 80 or over. The majority of those payments—over 1 million—were paid before Christmas. Means-testing the winter fuel payment was a choice we had to make to protect the most vulnerable pensioners, while doing what is necessary to repair the public finances after 14 years of the wrecking ball that is the Conservative party. It is the difficult decisions we have taken that mean this Government are able to provide much-needed additional investment in the NHS, which benefits us all, including pensioners who rely on these services. The Government are working hard to reform the NHS in England through the 10-year health plan to build a health service that is fit for the future.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  I thank the hon. Lady for her intervention. I am sure she is capable of contacting my hon. Friend the Member for Makerfield herself, but I recall that he did mention that he was working closely with his local authority. I am sure it has been able to assist in that campaign, which he described as a partnership rather than his own work, to drive take-up in his area. As detailed earlier by the Pensions Minister, we are directly targeting all pensioners who make a new claim for housing benefit, bringing together the administration of pension credit and housing benefit, and we are introducing new research on the triggers and motivations that encourage people to apply for pension credit, to guide future policymaking. I echo the Pensions Minister’s remarks on the triple lock. It is worth repeating that over 12 million pensioners will benefit from our commitment here. Over this Parliament, up to and including 2029-30, the OBR forecasts that Government spending on the state pension will rise by over £31 billion. And there is lots of other support too, including the warm home discount and the household support fund, available to pensioners. I will turn now to some of the other specific points raised during today’s debate. Several Members raised the delays in pension credit processing. It is important for me to recognise here the sheer volume of applications the Department received during this period. We understand that pensioners expect their applications to be processed quickly and accurately, which is why we deployed over 500 extra staff to process the huge increase. The latest statistics also show a positive picture: outstanding claims have reduced from 85,500 in mid-December to just 33,700 by 23 February, which is in line with the Department’s usual number of claims awaiting processing. Some hon. Members raised the issue of an impact assessment at the time of the policy decision. In line with the requirements of the public sector equality duty, an equality analysis was produced as part of the ministerial decision-making process. That was published on 13 September and placed in the House of Commons Library. It assessed the effects on individuals and households according to protected characteristics set out under the Equality Act 2010. They do not include impacts on the NHS. Other hon. Members have quoted figures on the poverty impact of the changes to winter fuel payments. I simply note that yes, internal Government modelling was produced as part of routine policy advice. Given the interest from the Work and Pensions Committee and the public interest, the Department published this modelling for transparency in a letter to the Select Committee in November. However, it is essential to note that this modelling is subject to a range of uncertainties, which should be taken into account when interpreting the results, and that it does not take into account any impact of the measures we are taking to increase pension credit take-up and ensure pensioners get the benefits to which they are entitled.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  I dispute the right hon. Lady’s statistics. She is right to highlight that there has been an increase in hospital admissions among over-65s, but that is entirely in line with the statistics for people entering hospital in other age cohorts. That is actually a result of the collapse of the NHS on the Conservatives’ watch, which means that A&E is the only option for so many people. As I was saying, as a first step at the autumn Budget, the Government announced a £22.6 billion increase in day-to-day health spending in England and a £3.1 billion increase in the capital budget over this year and the next. But we know that even with our long-term efforts to rebuild critical public services, pensioner poverty is a very real concern.

• 19 Mar 2025 · Winter Fuel Payment · Hansard source

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  What I would say to the hon. Lady is that I would never want to see those numbers increase, but that number is significantly better than the 300,000 pensioners who went into relative poverty under her Government. To those asking about Government action with respect to energy costs, I say that the Government recognise that affording energy bills is a struggle for many and that energy debt is rising. The Government have continuous engagement with energy suppliers and have discussed the support they have in place to support vulnerable consumers, including pensioner households. We are continuing to deliver the warm home discount for eligible low-income households and have recently published a consultation on its expansion, which would bring around 2.7 million more households into the scheme, pushing the total number of households receiving the discount next winter up to around 6 million. I will turn briefly to some of the contributions from Members on the Conservative Benches, and in particular from the shadow Secretary of State for Work and Pensions, who, interestingly—given the description used by the hon. Member for South Leicestershire (Alberto Costa) of this side of the House—I felt expressed faux outrage at this decision. It is rich from a party that, as I said, pushed 300,000 pensioners into relative poverty, made pitiful efforts to address pension credit take-up, made a 2017 manifesto commitment to means-test the winter fuel payment and let the value of the winter fuel payment fall by around 50% during its time in government. The shadow Secretary of State for Work and Pensions went on to make repeated reference to Labour Members’ consciences, which was relatively offensive, but nothing compared with being called the “nasty party” by the hon. Member for South Leicestershire. I will not accept those sorts of attacks from the Conservatives—the party of Downing Street parties, the party of the inhumane Rwanda scheme, and the party that drove so many to food banks. My conscience is clear, Madam Deputy Speaker; it is appalling to imagine that theirs is the same after what they did to this country over 14 years. I listened very carefully to— [ Interruption. ] I am being chuntered at from a sedentary position about the household support fund. I remind the shadow Secretary of State that it was not fully funded by the Conservatives on a multi-year basis, and it is this Government who have provided that certainty to local authorities. I listened very carefully to the speech from the shadow Health Secretary and, indeed, the more than dozen speeches from Opposition Members, and I am still no clearer on what their policy actually is. We had one Member standing up and saying means-test, another standing up and saying tax the winter fuel payment, but neither shadow Secretary of State present bothered to stand up and tell us what the Conservatives’ policy is. If they want to stand up now and say that they would reverse this policy decision, I would be happy to give way to either of them. Feel free. Their silence says it all, Madam Deputy Speaker. We have made the hard choices necessary to bring the public finances back under control after 14 years of Tory misrule.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  I thank the hon. Member for tabling the new clause. The Government recognise the opportunities that AI and machine learning can provide, while also understanding the need to ensure they are used safely and effectively. In January 2025, the Government outlined their response to the AI opportunities action plan led by Matt Clifford, which was commissioned by my right hon. Friend the Secretary of State for Science, Innovation and Technology. The plan outlined 50 recommendations for how the Government can leverage AI, including recommendations to improve access to data, to make better use of digital infrastructure and to ensure the safe use of AI. Under the leadership of the Prime Minister and the Secretary of State for Science, Innovation and Technology, we have endorsed this plan, and the Government are taking forward those recommendations. As the Government work to implement the action plan’s recommendations, I do not believe that the separate anti-fraud and error technology strategy proposed by the new clause is necessary. I believe the new clause would cut across the work being taken forward under the action plan, so I reject the amendment. As technology advances, the use of AI and machine learning will play a crucial role in detecting and preventing fraudulent activities. The Government want to make use of technology and data to tackle fraud, as the Department has a responsibility to ensure that fraud is minimised so that the right payments are made to the right people. The Government remain committed to building our AI capability, and at DWP we will take advantage of the opportunities offered by AI while ensuring it is used appropriately and safely.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  I contend that amendment 32 is simply disproportionate given the wide range of benefits that the Bill is expected to deliver to address fraud and error, not just in the social security system but in the public sector more widely. It is essential that all of Government have access to the capabilities and tools required to stop fraudsters stealing from the taxpayer. Tens of billions of pounds are being lost to public sector fraud. These losses are unacceptable, and waste enormous sums of public money, which could be put to good use. Delaying the Bill coming into force will risk £1.5 billion of savings over the next five years. These have been certified by the Office for Budget Responsibility. The Government made a manifesto commitment that we would safeguard taxpayers’ money and not tolerate fraud or waste anywhere in public services. The Bill delivers on that commitment, and delaying its delivery is unfair on taxpayers, who deserve to have confidence that money spent by Government is reaching those who need it, and not those who exploit the system. Secondly—we have already discussed this point at length—I remind Members that the Bill introduces new, important safeguards, including provisions for independent oversight and reporting mechanisms, to ensure the proportionate and effective use of the powers. New codes of practice will be consulted on and published to govern how new measures will be exercised in more detail. That will include details of further protections. There will be new rights of review and appeal in both parts of the Bill to ensure that there are opportunities to challenge the Government’s approach. A human being will always be involved in decisions about further investigation or the recovery of any debt. Finally, I return to my earlier point: data and information sharing are crucial when we look at fraud and error. For example, the eligibility verification measure, while it will not be applied to carer’s allowance itself, will improve the DWP’s access to important data to help to verify entitlements, ensure that payments are correct, and prevent the build-up of overpayments. That will enable the DWP to be tough on those who cheat the benefits system and fair to claimants who make genuine mistakes. It is vital that the DWP is equipped with the right tools, and delaying this Bill will only delay these benefits. In the light of that, I hope that Members will not press the amendment.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  We have reached the stage in Committee at which the hon. Member for Torbay can second-guess my comments. He will be as pleased as I am that this is the last of the new clauses for debate, but it is a very serious one. New clause 17 seeks to place a duty on Secretary of State to consider the impact of a proposed direct deduction order where a person is a victim of domestic abuse, or officials reasonably believe they are at risk of domestic abuse, and they share an account with a perpetrator of that abuse. I share the hon. Member for Torbay’s view that, where the new recovery powers are exercised, there should be a consideration of whether there is evidence of domestic abuse. However, I do not believe the new clause reflects the right approach. The DWP understands the importance of supporting victims and survivors of domestic abuse, and has existing guidance, processes and operational best practice for supporting them. The new clause would apply to both debtors and non-debtors, and would not require the DWP to take any steps to identify possible victims. Subsection (1)(a) would place a duty on officials to consider the impact any time a person was a victim, even when the DWP did not and could not have known that that was the case. Subsection (1)(b) would imply a duty to assess whether there was reason to believe the person was at risk of domestic abuse but, as the hon. Member for South West Devon suggested, in many cases the DWP will not be in a position to make that assessment. That would put officials in a difficult, if not impossible, position. As the direct deduction powers will be used as a last resort where multiple attempts to engage with the debtor to arrange a voluntary, affordable and sustainable repayment plan have failed, we anticipate that the DWP will know very little about the debtor’s current circumstances, unless it had been made aware previously or there were clear identifiable risk factors. We are working closely with charities, some of which the hon. Member for Torbay will have heard from, to help to identify those risks, as I will outline. Where a joint account holder could be at risk of domestic abuse but is not the debtor, we are unlikely to have ever had direct dealings with them prior to the power being used. Unless we were directly notified, it is unlikely we would have the information necessary to form the reasonable belief that they were at risk, and much less likely that we could identify all the cases where the person was experiencing abuse. I do not, therefore, agree that a placing a legal duty on officials in this way is the right approach. We are committed to continuing to support victims of domestic abuse whenever they interact with the Department, which is why we are working with charities such as Surviving Economic Abuse, which is dedicated to advocating for women whose partner has controlled their ability to acquire, use and maintain economic resources. SEA is supporting the drafting of the code of practice to ensure that robust safeguards are in place and to encourage engagement specifically from those who are vulnerable, including victims of domestic abuse. Although SEA works with women, the principles will apply to all victims and survivors of domestic abuse. Frontline debt management staff already receive training for their role, including on assessing affordability, discussing hardship, and identifying and dealing with vulnerable customers. As we have heard, a specialist debt enforcement team will exercise the new recovery powers, and it will be governed by a code of practice. As explained, we will consult on the draft code of practice, and I welcome further views as part of the wider public consultation. Finally, I note that paragraph 6(1)(b) of schedule 5 already imposes a broad duty on the Secretary of State to ensure that the amount of any deduction is “fair in all the circumstances.” That would include consideration of the impact on a victim of domestic abuse, as the hon. Member for Torbay seeks in the new clause, where the relevant context and circumstances are known to the Department. I hope that reassures the hon. Member that his concerns are already addressed in the Bill, and that the DWP takes domestic abuse seriously and will continue to do so when exercising the new recovery powers.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  In my view, the new clause is simply not needed. As the hon. Lady said, to demonstrate the feasibility and potential of the eligibility verification measure, the DWP conducted two proofs of concept, in 2017 and 2022, and the results have been published in the impact assessment for the Bill. Further information on the effectiveness of the measure will, of course, be available following the independent overseer’s annual review and report. No pilot schemes have or will be conducted on information notices specifically, as they are an extension of existing powers. On that basis, I resist new clause 5.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  It is important that I begin by paying tribute to the millions of unpaid carers across this country. The Government recognise and value the vital contribution made by carers every day in providing significant care and continuity of support to family and friends, including pensioners and those with disabilities. The 2021 census indicates that around 5 million people in England and Wales may be undertaking some unpaid care, and many of us take on a caring role at some point in our lives. Like other hon. Members, through my postbag and at events across my constituency, I see much of the work carers do. Carers are fortunate to have some wonderful advocates, not only their MPs but organisations such as Carers UK, Carers Trust and the Learning and Work Institute, to name but three. We inherited a system in which busy carers already struggling under a huge weight of responsibility had been left having to repay large sums of overpaid carer’s allowance, sometimes worth thousands of pounds. We needed to understand exactly what had gone wrong so we could set out our plan to put things right. This is why we launched an independent review of earnings-related overpayment of carer’s allowance. We were delighted that Liz Sayce OBE agreed to lead this review, which is now well under way; we anticipate receiving its conclusions this summer. The review will investigate how overpayments of carers allowance have occurred, what can be done to best support those who have accrued them, and how to reduce the risk of these problems occurring in future, but we are not sitting back and just waiting for the outcome of the independent review. Right now, we want to make it as easy as possible for carers to tell us when something has changed in their life that could affect their carer’s allowance, so we will continue to review and improve communications. From this April, the weekly carer’s allowance earnings limit will pegged to 16 hours’ work at national living wage levels, so in future it will increase when the national living wage increases. The earnings limit will be £196 a week net earnings, up from £151 today. As a result, over 60,000 more people will be able to receive carer’s allowance between 2025-26 and 2029-30. That is the largest increase in the earnings limit since carer’s allowance was introduced in 1976. As the Chancellor said at the Budget, we need to look at the current cliff edge earnings rules. A taper could further incentivise unpaid carers to do some work and reduce the risk of significant overpayments, but introducing a taper to carer’s allowance is not without challenges. It could significantly complicate the benefit, and significant rebuilding of the carer’s allowance system would be required. The DWP has begun scoping work to see whether an earnings taper might be a feasible option in the longer term, but any taper is several years away. New clause 10 sets out four points. As I have mentioned, an independent review has been commissioned, its terms of reference have been published and it is well under way. It is anticipated that it will report its conclusions in the summer. Both the report from the independent review and the Government’s response will be published, and we will report to the House. I disagree with the hon. Member for Torbay on two issues. It would not be responsible of us to commit in advance to implementing all and any recommendations from such a review, sight unseen. We need to consider them carefully. In addition, the proposed new clause, as I understand it, would not have the effect he desires. We would still be able to recover overpayments of carer’s allowance from benefits under the powers in the Social Security Administration Act 1992. The new clause would prevent our recovering debts directly from bank accounts of those not on benefits or PAYE, which is one of the additional powers given in this Bill. Even if the new clause operated as intended, it would be disproportionate to suspend all recovery of carer’s allowance overpayments until after the review is concluded, as those with overpayments are already covered by the usual safeguards of appeal rights, affordable deductions and, in exceptional circumstances, waiver. Given the discrepancy this would create between those on PAYE and benefits and those with other forms of income, I hope the hon. Gentleman acknowledges the need to withdraw the new clause rather than create further unfairness in the system. Regarding new clause 11, I re-emphasise that we will not speculate on the findings or any potential outcomes of the independent review. All recommendations will be considered when the independent review concludes. It would not be appropriate of the Department to commit to this new auditing requirement until that has happened, when we can take a holistic view of carer’s allowance and how DWP uses data. Nevertheless, it is helpful to set out how DWP currently uses data to verify eligibility for carer’s allowance. Verification of earnings and pensions alerts were introduced to carer’s allowance in October 2018 as part of a wider strategy to identify data sources, to verify information provided by the claimant, or to identify if information has not been provided by the claimant. Like all data we use for that, it is not intended to replace the legal requirement of a claimant to provide information that may change their entitlement to social security. VEP alerts arise from HMRC payroll data. The alert service provides a notification of new earnings or pensions as they come into payment, or if amounts change during the life of the claim. The Department uses business rules to prioritise those alerts, based on data provided by the real-time earnings system. Since 2019, we have actioned around 50% of the alerts received in the Department as part of our focus on reducing the risk and level of overpayments. Having secured additional funding in the one-year spending review, we will be deploying additional resource in 2025-26,to action the alerts received from HMRC as quickly as possible. The Department is also testing an approach of using text messages to remind customers of the need to report changes in their circumstances. Finally, I emphasise that the use of VEP alerts does not replace human decision making. If the Department processes an alert that highlights a change in earnings and a customer has not reported the change, DWP officials will contact the customer to confirm details have changed. If any overpayment is identified, it will be referred to debt-recovery teams. DWP remains committed to working with anyone who is struggling with their repayment terms, and will always look to negotiate sustainable and affordable repayment plans. In the light of the information I have set out, and the ongoing work of the carer’s allowance independent review, I urge the hon. Member for Torbay to withdraw the proposed new clause.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  That is a reasonable question, and clearly the AI framework is not specific to vulnerable groups in the way that the hon. Lady sets out. Decisions regarding benefit entitlement or payments within the Department are made by DWP colleagues who always look at the available information before making a decision. I would not want to make an amendment to restrict that to only the activity within this Bill; I would want it to be Departmental wide. As I have set out a number of times at every stage and in every area of this Bill, a human is involved in decision making. There is no plan to change that. I can understand the hon. Lady’s anxiousness to see that set out in legislation, but I think it would create an anomaly between the practices within this Bill and in the Department more broadly. For instance, it is outside the scope of this Bill for a human to complete the vulnerability framework when looking at somebody in financial need who has an overpayment. I would not want to make a distinction between these powers and the rest of the Department's activities. If we were to have a broader debate, I would be happy to engage with the hon. Lady on that basis, but I would not want to create a “two-tier”, for want of a better word, description within the Department. At every stage of model development, as we bring forward the AI opportunities action plan and our work in the AI and tech space, we ensure that checks, balances and strong safeguards are in place. I am proud of our commitment to use AI and machine learning in a safe and effective way. To provide further assurances to Parliament and the public about our processes, we intend to develop fairness analysis assessments, which will be published alongside our annual report and accounts. These will set out the rationale for why we judge our models to be reasonable and proportionate. This reporting commitment on our fairness analysis assessment further negates the need for the new clause. Finally, the hon. Lady mentioned the new clause’s role in ensuring reasonable grounds of suspicion when investigating fraud. I remind the Committee that, under the information gathering powers, the DWP may request information only where an authorised officer considers that there are reasonable grounds to suspect a DWP offence and that it is necessary and proportionate to obtain that information. Again, a human is fully baked into the process. The changes made by the Bill will be reflected in the new code of practice. Updated mandatory training will be provided for staff, who will be accredited to use these new powers. Of course, with the eligibility verification measure in particular, but running throughout the Bill, the principle of independent oversight is very much in place. I hope that will provide the hon. Lady with the necessary information to show that the Government will use the information gathering powers only where there is a reasonable suspicion of fraud, and that this will have considerable human involvement. I agree that there is perhaps a broader conversation to be had about this at an appropriate time.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  I place on the record my thanks to you, Mr Western, and all the other Chairs who have supported and guided us through the Bill. I thank the Clerks and officials from the Cabinet Office and DWP for their support. I also thank my co-pilot, the Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Queen’s Park and Maida Vale; the Opposition spokespersons; and all Committee members for their input. I commend the Bill to the Committee. Question put and agreed to. Bill, as amended, accordingly to be reported.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  I begin with new clause 9, tabled by the hon. Member for South West Devon. I share her view that where the powers in the Bill are exercised, there should be a consideration of the vulnerabilities that customers may have, whether they be the customers of data holders such as banks or customers of Government —for example, DWP customers. However, I do not think that the new clause is necessary given the existing safeguards, oversight and reporting provisions in the Bill. The Bill includes a number of protections for vulnerable people, including affordability considerations and protections for persons experiencing hardship, rights of review and appeal, and independent oversight. Those provisions have already been debated and considered by the Committee, so I will not labour the point, but I will comment on the provisions in the Bill for independent oversight, as they will play an important role here.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  I would like to understand how the Opposition Front-Bench team consider new clause 15 to make any provision that is not already in the Fraud Act 2006 or the Serious Crime Act 2007, which already make it an offence to encourage or assist an offence including fraud. I stress that because I am particularly concerned about sickfluencers, to whom the hon. Lady referred, but I fail to see how new clause 15 offers any provision not contained in that legislation already. It does not mention at any point that it would extend powers to what happens online, presumably because—or I can say actually because—online sickfluencers would already be covered by that legislation. I understand the intent. We have a problem with sickfluencers that we need to deal with, but I would be incredibly appreciative to understand how the new clause offers anything that is not already in that legislation.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  I share and appreciate the hon. Member’s concern and interest in delivering the proposed benefits of the Bill, including the effective recovery of debt. The Bill delivers on our manifesto commitment that this Government will safeguard taxpayers’ money and not tolerate fraud or waste anywhere in public services. Turning first to part 2 of the Bill, I do not think the new clause is necessary, given the existing routes for external scrutiny and reporting on the DWP’s fraud and error activities, including the new debt recovery powers. The Office for Budget Responsibility provides independent scrutiny of the Government’s costings of welfare measures. The Department estimates that, over the next five years, the EVM will save £940 million and the debt recovery measure £565 million. Those estimates have been certified by the OBR. In total, the Bill is estimated to deliver benefits of £1.5 billion over the next five years. In the published impact assessment, the DWP committed to monitoring and evaluation on part 2 of the Bill, including the new powers to recover debt and the EVM. Although I understand that the hon. Member is particularly interested in scrutiny of the money recovered under the Bill, I remind the Committee that the Government have committed to the biggest welfare fraud and error package in recent history. The total DWP fraud, error and debt package, with savings from the Bill and other Budget measures, is worth £8.6 billion over the next five years. In its annual report and accounts, the DWP already reports on the savings made from its fraud and error activities, including savings made from “detect” activity across our counter-fraud and targeted case review teams. In addition, we report on our debt recovery totals and debt stock. I think the annual report and accounts, in particular, will give the hon. Member the information in which she is interested. The Department also publishes annual statistics on the monetary value of fraud and error, including various breakdowns by benefit and type. That is another mechanism by which we can see trends over time and ensure transparency for the public. Turning to part 1 of the Bill, the PSFA already has a published commitment in its mandate to produce an annual report that makes transparent the levels of fraud in Government and the latest fraud and error evidence base, and an annual report on its performance. Recoveries will be published in the annual report. Paragraph 12 of schedule 2 to the Bill also requires: “As soon as reasonably practicable after the end of each financial year the PSFA,” when set up as a statutory body, “must prepare a report on the exercise of its functions during that financial year.” Recoveries will be published as part of that. For the reasons I have outlined, I resist the new clause.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  It is a pleasure to serve under your chairship once again, Mr Western. Before I come to my general comments on the new clause from the hon. Member for Brighton Pavilion, I will attempt to respond to some of the questions that we have heard. On how we can assure ourselves that people could reasonably have known, this assessment is made by our specialist investigation teams, who do this day in, day out. There is a balance of probabilities that they would apply to instances such as that. It is a process that has been in place for years. On whether an appointee would be liable for an overpayment, yes, they would. How much is official error? It is approximately 0.3% of all benefit payments. About £800 million is the most recently available annual figure. On how a repayment plan is agreed—this goes to the point that the hon. Member for Torbay made also—we again have a specialist team who calculate this. We have a vulnerability framework should that be required. All repayment requests are done on an affordable basis. As we heard last week, the specifics around the new debt recovery power make attempts, throughout the process, to agree an affordable repayment plan. The limits that the Bill would put in place would be not more than 40% in the case of an ongoing deduction and 20% in cases of error. On the point about recovery causing destitution, which the hon. Gentleman also made, he will have noted that towards the end of last year, the Department announced its new fair repayment rates, reducing the amount of deduction that can be made from benefits down to 15%. As I have just outlined, further provision is made where we are looking to take these new powers to deduct directly from bank accounts. To return to the point that the hon. Member for South West Devon made about prevention of overpayments, the eligibility verification measure is intended to help us to identify fraud, particularly in relation to capital, and people who have been abroad longer than they should be, in terms of aligning that with their eligibility for benefits, and we think that it will enable us to identify error overpayments sooner as well. Of course, people are regularly reminded to update their circumstances also. A range of mechanisms are in place already to assist with the identification of overpayments. We are not complacent. We know that there are too many overpayments through official and claimant error, just as there is far too much fraud in the Department. That is why we are taking many of the steps identified and outlined in this Bill. Before I turn to my comments about new clause 1 specifically, let me just make a correction to something that I told the Committee last week. I said that the minimum administrative penalty that can be offered, which receives a four-week loss of benefit, is £65. I misspoke and I would like to take this opportunity to correct the record and state that the amount is £350. New clause 1 seeks to amend existing recovery legislation, to limit when overpayments of universal credit and new-style benefits caused by official error could be recovered. Specifically, those official error overpayments would be recoverable only where the claimant could have been reasonably expected to realise they were not entitled to the overpayments in question at the time they received them. This Government are committed to protecting taxpayers’ money and ensuring that we can recover in a fair and affordable way money owed. The debt recovery powers in the Bill apply to all debt that Parliament has determined can be pursued. Section 71ZB of the Social Security Administration Act 1992, introduced in the Welfare Reform Act 2012 under the coalition Government, made any overpayment of universal credit, new style jobseeker’s allowance and employment and support allowance in excess of entitlement recoverable. That includes overpayments arising as a result of official error. Official error can arise for a number of different reasons. Some errors, for example, occur as a result of the flexibility of the universal credit system. Unlike the tax credit system it replaces, UC works on a monthly cycle of assessment periods. It is to be expected that on occasion, corrections or changes take place over assessment periods. The system quickly rectifies these “errors” in the next assessment period and it is vital that this functionality is maintained. In these instances, the customer is not worse off as, over the course of subsequent assessment periods, they receive the correct amount on average. It is also helpful to explain that under existing departmental processes, customers have the right to request a mandatory reconsideration of their benefit entitlement as well as the amount and period of any subsequent overpayment. Following that, they can appeal to the first-tier tribunal, should they still disagree with the Department’s decision. We recognise that overpayments, however they arise, cause anxiety for our customers. The Department’s policy is therefore to recover debts as quickly and cost effectively as possible without causing undue financial hardship to customers. DWP’s overall approach to recovery balances the need to protect public funds by maintaining recovery levels, while providing a compassionate service to all customers regardless of their circumstances. The Department’s policy is therefore to agree affordable and sustainable repayment plans. The debt recovery measures in the Bill, however, are last-resort powers for debtors who are no longer on benefits or in pay-as-you-earn employment and are persistently evading debt recovery. These powers apply across all types of debt. All our communications to our customers signpost to independent debt advice and money guidance, and we heard from the Money and Pensions Service in our evidence sessions about how strong the partnership working between the Department and debt sector is. DWP is committed to working with anyone who is struggling to repay their debt and customers are never made to pay more than they can afford. Where a customer feels they cannot afford the proposed rate of recovery, they are encouraged to contact the Department to discuss their repayment terms. The rate of repayment can be reduced or recovery suspended for an agreed period, and the Department may also consider refunding the higher deduction that has been made. The Department’s overpayment notifications have been updated to make sure customers are aware they can request a reduction in their repayment terms. In exceptional circumstances, the Department has the discretion to waive recovery of the debt, in line with the Treasury’s “managing public money” guidance. In doing so a range of factors are considered including the circumstances in which the overpayment arose. Finally, I have listened to and take seriously the concerns from the hon. Member for Brighton Pavilion. As the Committee is aware, the Minister for Social Security and Disability is looking at the policy design of universal credit to ensure outcomes that tackle poverty and help people to manage their money better. I will pass the concerns raised by the hon. Lady on to him, but having outlined the reasons against it, I will resist new clause 1.

• 18 Mar 2025 · Public Authorities (Fraud, Error and Recovery) Bill (Twelfth sitting) · Hansard source

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  I share the support expressed by the hon. Member for Horsham for the algorithmic transparency recording standard as a framework for capturing information about algorithmic tools, including AI systems, and ensuring that public sector bodies openly publish information about the algorithmic tools used in decision-making processes that affect members of the public. However, I do not think the new clause is a necessary addition to the Bill, and I will explain why. First, all central Government Departments, including the DWP and the Cabinet Office, are already required to comply with the standard as appropriate. We are committed to ensuring that there is appropriate public scrutiny of algorithmic tools that have a significant influence on a decision-making process with public effect, or that directly interact with the public. We have followed and will continue to follow the guidance published by the Department for Science, Innovation and Technology on this to ensure the necessary transparency and scrutiny. Secondly, I remind the Committee that although the DWP and PSFA are improving their access to relevant data through the Bill, we are not introducing any new use of machine learning or automated decision making in the Bill measures. I can continue to assure the House that, as is the case now, a human will always be involved in decisions that affect benefit entitlement. Thirdly, although I do not wish to labour the point yet again, I remind the Committee that the Bill introduces new and important safeguards, including reporting mechanisms and independent oversight in the Bill, demonstrating our commitment to transparency and ensuring that the powers will be used proportionately and effectively. The DWP takes data protection very seriously and will always comply with data protection law. Any information obtained will be kept confidential and secure, in line with GDPR.

• 17 Mar 2025 · Jobcentres: Impact on Economic Growth · Hansard source

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  The right hon. Gentleman is correct to raise the issue of jobcentres reaching out to local employers. We know that we have a significant issue with whether the jobcentre is the vehicle of choice to advertise local job opportunities. That is a long-standing issue that we are keen to address. I am delighted to congratulate his local jobcentre on the work it is doing to promote the jobs fair.

• 17 Mar 2025 · Jobcentres: Impact on Economic Growth · Hansard source

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  Supporting everyone to find good, meaningful work and helping them to progress is vital for economic growth. That includes disabled people who want to work and contribute, but who are let down by the current system. Jobcentres have a key role to play in that, and through creating a new jobs and careers service, we will help more people get into work and get on at work, supporting our ambition for an 80% employment rate.

• 17 Mar 2025 · Jobcentres: Impact on Economic Growth · Hansard source

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  My hon. Friend is correct to highlight the importance of tackling economic inactivity in order to drive up economic growth. This Government understand the negative effects that unemployment can have on mental health, particularly among young people, which can impact future prospects. The youth guarantee will help address barriers faced by young people to ensure that they can access quality training opportunities and apprenticeships or help to find work, boosting their confidence and giving them the very best chance of success in the workplace.

• 17 Mar 2025 · Welfare Fraud: Serious and Organised Crime · Hansard source

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  The Department works collaboratively with other Departments and with law enforcement agencies on investigations of benefit fraud carried out by organised criminal gangs. New powers in the Public Authorities (Fraud, Error and Recovery) Bill, which was mentioned earlier by the Minister for Employment, will strengthen our ability to tackle organised crime by modernising and enhancing our investigation powers, granting DWP officials powers of search and seizure, and ensuring that those who defraud the public sector face appropriate consequences.

• 17 Mar 2025 · Welfare Fraud: Serious and Organised Crime · Hansard source

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  My hon. Friend is right to raise this issue. The eligibility verification measure in the new Bill will do just that, providing a crucial data feed to help us identify fraud that relates to pension credit as well as to universal credit and employment and support allowance. This will flag up claimants who are potentially in breach of eligibility under capital and abroad criteria, so that we can start to lower the unacceptable level of fraud and protect the public purse.

• 17 Mar 2025 · Supporting Care Leavers into Employment · Hansard source

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  The Department supports care leavers aged 16 to 24 through an extensive range of interventions to help them into employment. For example, care leavers who start an apprenticeship are signposted to a £3,000 bursary from their training provider, and they can still receive universal credit if they are on a low income. More broadly, under the new youth guarantee, all young people aged 18 to 21 in England, including care leavers, will have access to support to enter employment, education or training opportunities.

• 17 Mar 2025 · Supporting Care Leavers into Employment · Hansard source

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  My hon. Friend is absolutely correct to highlight those statistics. The number of care leavers not in education, employment or training is absolutely unacceptable, and he will be stunned to hear that I am in full agreement with him.