B

Baroness Anderson of Stoke-on-Trent (Lab)

Speaking in the House of Lords on 21 October 2025

Debate

Public Authorities (Fraud, Error and Recovery) Bill

Contribution

My Lords, I now turn to Amendments 34, 36, 37, 38, 39 and 40. This group of amendments addresses some concern we have heard throughout the passage of this Bill—most recently from the noble Baroness, Lady Finn, during Grand Committee—that the enforcement unit being part of the Cabinet Office means that there is limited oversight and accountability for the use of the powers in Part 1 of this Bill. However, setting up the PSFA’s enforcement unit as a stand-alone statutory body would be disproportionate while it is still small. While I strongly believe that the PSFA has established a robust oversight provision and built a multitude of safeguards into this legislation, as well as into its processes and structures, I am aware of how complicated and contentious this space is, particularly in respect of protecting the public from the misuse or incorrect use of powers. We have therefore tabled this group of amendments to enable the PSFA and the powers in this Bill to be merged with another statutory body, rather than necessarily being set up as a stand-alone statutory body, although the power to do that remains. This builds flexibility into the legislation to achieve the same aim, in terms of separation between investigators and Ministers in future, but avoids the need to set up an entirely new statutory body if it is not considered proportionate to do so. Importantly, this would enable the PSFA’s enforcement unit to be moved at arm’s length from Ministers sooner, adopting the protections, governance and accountability set out in Schedule 2 to the Bill. As the Government have said during the passage of this Bill, it is not proportionate to set up a new stand-alone ALB for a small enforcement unit. These amendments allow for even a relatively small unit to be placed at arm’s length from Ministers, if desired, without incurring disproportionate overheads. Ministers also have a responsibility to the taxpayer to ensure public money is spent judiciously and where it is most needed. It is counter to government policy to establish a new statutory body when its function could be undertaken by existing bodies. Building in this flexibility through these amendments enables us to achieve the same policy intent without necessarily adding to the proliferation of ALBs. When it is the right time to establish the PSFA’s enforcement unit at arm’s length from Ministers, that will happen only with engagement, debate and agreement with both Houses of Parliament. Your Lordships’ House has spoken, and we have listened. I beg to move.

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