Baroness Finn (Con)

My Lords, I speak in strong support of this amendment, so ably tabled by the noble Lord, Lord Verdirame, and supported by the noble Baroness, Lady Lister, and the right reverend Prelate the Bishop of Leicester, and to which I am pleased to have added my name. The amendment speaks across so many of the principles that have underpinned our debates and the position that we on these Benches have adopted throughout Committee and Report—fairness, proportionality, transparency and responsibility. This amendment is about finding this balance and ensuring that the recovery of overpaid public funds is carried out in a way that is both effective and humane. We have been clear from the outset that we support the core objectives of this Bill. Public money that has been wrongly paid out, whether through error or fraud, must be recovered. We owe that duty to the taxpayer and the integrity of our public finances. Equally, it is a duty of government to ensure that such recovery is done in a way that is fair, measured and responsible, does not impose unnecessary hardship, recognises the realities of individual circumstances and upholds confidence in the system. This amendment embodies precisely that balance. It would establish clear and necessary safeguards before deductions are made from a person’s benefits. It would require that the liable person be notified of the rate and the basis of deduction, and, crucially, that they be given the opportunity to make representations about affordability. It would insist that deductions should proceed only where the Secretary of State is satisfied that recovery will not cause hardship in meeting essential living expenses and that the process is fair in all circumstances, including where the overpayment may have arisen through official delay or error. Sensibly, it seeks to sets a six-year limit for recovery, in line with the limitation period that applies through the courts. In other words, this amendment would ensure that the state exercises its right to recover the money in a way that is just, proportionate and accountable, and would align the recovery of overpayments through benefit deductions with the very same principles of fairness and restraint that we have already built into Schedule 5 in relation to deductions from bank accounts. Throughout our scrutiny of this legislation, we have repeatedly emphasised that good governance is not simply about having the power to act but about exercising that power responsibly. This amendment reflects that philosophy perfectly. It strikes the right equilibrium between fiscal responsibility and social justice and between protecting the taxpayer and those who may already be in vulnerable situations. I thank the noble Lord, Lord Verdirame, for bringing forward this thoughtful and well-crafted proposal. It would strengthen the Bill, give legislative effect to the principles of transparency, fairness and proportionality, and ensure that, in pursuing the legitimate goal of recovering public funds, we do so in a manner that remains worthy of public trust. This is a measured, sensible and responsible amendment and we are very pleased to support it. I hope the Minister will give welcome assurances on it.