Work and Pensions Secretary Liz Kendall has moved to reassure those concerned about the upcoming Public Authorities (Fraud, Error and Recovery) Bill.
She emphasized that people genuinely entitled to claim Personal Independence Payment (PIP) and other benefits have nothing to worry about.
The Fraud Bill, aimed at cracking down on persistent welfare fraud, includes measures such as stripping fraudsters of their driving licenses and allowing the Department for Work and Pensions (DWP) to recover money directly from bank accounts.
However, concerns have been raised about how it might impact disabled claimants, despite PIP fraud making up just 0.2% of cases.
Purpose
The bill is designed to target welfare fraudsters, enabling the DWP to:
- Recover overpaid benefits directly from fraudulent claimants’ bank accounts.
- Access financial information on individuals suspected of fraud.
- Ensure those who owe money but refuse to pay are held accountable.
Kendall defended the bill by highlighting that £7.4 billion is lost annually to fraud in the benefits system, making tougher measures necessary.
MPs’ Concerns
Despite Kendall’s reassurances, several MPs remain skeptical.
Independent MP Richard Burgon urged her to guarantee that there would be no “hostile approach” toward disabled people who rely on benefits. He highlighted that PIP fraud accounts for only 0.2% of cases, questioning the need for stricter scrutiny on disabled claimants.
Debbie Abrahams, chair of the Work and Pensions Select Committee, echoed these concerns, warning that the bill could discourage disabled people from claiming the support they are entitled to. She questioned:
“What do ministers consider an acceptable level of innocent people who will be investigated?”
“Big Brother Bill” Debate
Critics, including Liberal Democrat spokesman Steve Darling, have labeled the legislation a “Big Brother Bill”, arguing that it gives the DWP excessive surveillance powers.
He called for the bill to be withdrawn, warning that it resembles a “snoopers’ charter” that could infringe on privacy rights.
Government Safeguards
In response to concerns about oversight and fairness, Kendall clarified several key points:
- The DWP will not have direct access to people’s bank accounts.
- Personal financial details will not be shared with banks.
- Any final decision about someone’s benefits will be made by a human, not an automated system.
- The state pension is exempt from the bill.
- An independent oversight body will monitor how the powers are used.
She also assured that the Information Commissioner’s Office (ICO) had reviewed the bill to ensure it does not violate privacy rights.
Oversight Concerns
While the Conservative Party supports the aims of the bill, Shadow Work and Pensions Secretary Helen Whately warned that the legislation grants the DWP “very little oversight”, drawing comparisons to the Post Office Horizon scandal, where a flawed computer system led to wrongful prosecutions.
“The Horizon scandal is a reminder that computer systems don’t always get it right,” Whately said, cautioning that claimants could be unfairly penalized if safeguards are insufficient.
What’s Next?
The bill is still under parliamentary review, and further discussions will determine whether additional protections will be introduced to prevent wrongful investigations.
In the meantime, claimants genuinely entitled to benefits can take comfort in Kendall’s assurance that they will not be affected.
However, with growing opposition and public scrutiny, the government may face pressure to amend the bill before it becomes law.
FAQs
What is the Public Authorities Fraud Bill?
It is a government initiative to crack down on benefit fraud and recover lost funds.
Will the bill affect genuine benefit claimants?
No, Liz Kendall has assured that those entitled to benefits have nothing to worry about.
Can the DWP access my bank account?
No, the DWP will not have direct access to bank accounts but can recover fraudulent payments.
Why is the bill controversial?
Critics argue it gives the DWP too much power and may discourage disabled people from claiming benefits.
What safeguards are in place?
Decisions will be made by humans, not computers, and independent oversight will monitor the process.
