Contribution
My Lords, Amendments 99D and 109ZA are in my name. Amendment 99D seeks to ensure that, before a deduction order is applied, proper and fair consideration is given to the wider circumstances of the person under investigation, especially where there may be indicators of vulnerability. It is an amendment rooted not in obstruction but in principle and in pragmatism. It recognises that, if we are to give public authorities powerful tools to detect and recover fraud, we must also ensure that those powers are exercised with fairness and, crucially, the full understanding of the person’s situation.
Many individuals who fall under investigation may be living with complex challenges. I know that we touched on these matters earlier in Committee, but some of these issues are worth repeating. Some individuals may lack the mental capacity to understand what is being asked of them; others may be suffering from physical or mental health conditions that impair their ability to manage forms, deadlines or correspondence; and still others may be experiencing domestic abuse, coercion or forms of control that make it difficult or even impossible for them to make independent financial decisions. These people do not, certainly as yet, have a deputy, proxy or power of attorney in support. They remain in sole charge of their accounts.
I am sure that noble Lords across the Committee would welcome reassurance from the Government, first, on how these people will be identified and, secondly, how the system and process will cope and adapt to reflect their needs and, where needed, to protect them. These are not on-the-edge cases; they are realities that front-line officials in the department and around the country encounter every day. If we are not careful, precisely these individuals may end up most at risk of enforcement action—not because they are wilfully defrauding the system but because they simply did not or could not understand what was expected of them.
We must therefore be careful to differentiate error from intent to defraud. There will be cases where a person under investigation may not have understood what he or she was supposed to be doing but is technically fraudulent. This is exactly what this amendment seeks: it would require that the Secretary of State has due regard to the mental capacity, economic circumstances and health of the claimant, especially where there are indicators of vulnerability. It would also ensure that a fair and reasonable assessment of the person’s circumstances is conducted before any deduction is applied. I should say that this is not about softening our stance on fraud; it is simply about targeting it accurately and responsibly.
The amendment also places emphasis on the evidentiary basis of decisions. It allows for medical reports, financial statements and input from support workers or advocates to be taken into account. Importantly, it also creates a clear paper trail by requiring that decisions to deduct are documented with reference to how the claimant’s vulnerabilities were considered. That documentation must be made available upon request and be subject to independent audit. I argue that this is important and not a form of bureaucracy—before noble Lords get up.
So we come back to understanding how the test-and-learn operation and exercises will take account of this. Could the Minister give us some detail on how such cases will be identified and on the other questions that I asked earlier? I also ask her to help the Committee to understand what the Government will access in terms of information relating to these wider circumstances. We see it as vital that this information is taken into consideration.
At this stage of the Bill, it is also right that we ask what kinds of protections the Government intend to put in place for vulnerable people generally. This extends to the Cabinet Office aspects of the Bill. I realise that my noble friend Lady Finn may have raised these questions earlier, but what process will be followed to ensure that mental capacity is assessed? What training will investigators have to recognise signs of coercion or distress, and what mechanisms will be available to review decisions, particularly where someone’s vulnerability has been overlooked? These are not academic questions; they go to the heart of what kind of enforcement regime we are creating and how confident the public can be that it will act justly, especially where people are least able to defend themselves.
I turn to Amendment 109ZA. It is well established that the Government themselves recognise that disabled people face higher living costs than their non-disabled counterparts. We have had many debates in the Chamber that have highlighted these issues. We know that these costs are not optional; they are the result of essential needs—specialised equipment, personal care and accessible transport—and higher utility bills, among other things.