Sarah Olney

Under the previous Conservative Government, fraudsters got away with claiming billions of pounds of covid support funds, as an eyewatering £39.8 billion went uncollected due to tax evasion and other criminal activity. While vulnerable members of our society have seen their benefits cut and our public services are in need of investment, it is not right that public spending has been misplaced into the pockets of fraudsters. I am therefore grateful for many of the measures in the Bill that will work to reduce instances of fraud. However, I have concerns about some of the broader measures regarding the powers the legislation would give the Department for Work and Pensions and the potentially intrusive impact that could have on the civil liberties of citizens. I speak in support of new clause 23, tabled by my hon. Friend the Member for Torbay (Steve Darling), which would require a report to Parliament within six months on the causes and cost of public sector fraud during the covid-19 pandemic. The report would include an account of any fraudulent payments and a review of procurement practices during covid, including contracting for suppliers and the role of political appointments and personal connections in procurement decisions, as well as an assessment of the adequacy of Government oversight to prevent fraud against public authorities. Much of that work has already been undertaken by the Public Accounts Committee—I am a member, as I was in the previous Parliament—and it would be worthwhile for the Minister to take a look at some of our reporting on those topics. If failings are found, the new clause would require an outline of corrective actions, including a statement to this House to acknowledge the findings and to set out actions planned to ensure that any failings are not repeated. With public trust in politics at alarmingly low levels, we must take all possible steps to ensure integrity and the highest possible standards in governance. The cronyism, rule breaking and sleaze scandals of the last Conservative Government did huge damage to public trust in politics and politicians in this country. The new clause would lead to an increase of accountability and I urge the Minister to accept it. Even though I am glad to see the Government introduce measures that would crack down on instances of fraud, I have grave concerns about some of the broader measures in this legislation that would lead to an unacceptable increase in intrusion on individual privacy. That is why I speak in favour of amendment 2, which would revoke clause 74 and remove the requirement for banks to look into relevant claimants’ bank accounts. Some measures in the Bill raise significant concerns regarding the privacy of individuals, and I have heard from constituents who are alarmed at some of the powers that could be introduced with this legislation. I believe that fraud must be rooted out and that more should be done to prevent fraud from happening in the first place. However, clause 74 is an unnecessary and invasive step that I urge the Government to refrain from taking. I have heard from people who are concerned about the powers granted in the Bill because it enables the Government to have direct access to individuals’ bank accounts and even enables the DWP to withdraw funds or revoke driving licences. That concern is particularly serious when it comes to vulnerable groups, such as the elderly, disabled people and those living in poverty, who could face devastating consequences as a result of wrongful penalties. I welcome the Government’s commitment to cracking down on fraud. There were clear failures by the previous Conservative Government during the covid pandemic, which we saw highlighted in the PPE procurement scandal and the bypassing of the usual procurement rules via the VIP lane. It is essential that proper rules are in place to ensure that public spending is carried out in an effective, efficient and transparent way, and I am glad to support new clause 23, which would strengthen transparency and accountability on this issue. However, grave concerns about the intrusive powers that this legislation could introduce have been expressed across the House today, particularly those that allow the Government to require banks and other financial institutions to share client data, and as such, I urge the Minister to accept amendment 2 to revoke clause 74.