People claiming PIP and other work benefits “have nothing to worry about” with the upcoming Fraud Bill, the work and pensions secretary has said.
Liz Kendall told MPs on Monday that the Public Authorities (Fraud, Error and Recovery) Bill, which could see some persistent welfare fraudsters being stripped of their driving licence among other punishments, will not affect anyone who is “genuinely entitled” to claim benefits.
The Bill seeks to allow the DWP to recover money directly from fraudsters’ bank accounts and have the power to obtain statements from people they believe have enough cash to pay back welfare debts, but are refusing to do so.
On Monday, independent MP Richard Burgon asked Kendall for reassurances after highlighting that disabled claimants fear they are going to be targeted even though those receiving PIP made up just 0.2% of fraud and error cases in the benefits system.
Several MPs also expressed concern, including the chair of the work and pensions select committee who warned that “this is too important of a Bill to mess up and have innocent victims”.
‘Big Brother Bill’
Burgon, who lost the Labour whip after backing scrapping the two-child benefit cap, urged Kendall to “make clear” that there “cannot be any hostile approach to disabled people claiming PIP or disabled people more widely using the benefits system as they deserve to.”
“I put in a written question asking about the amounts lost in PIP fraud and the answer came back that in 2022/23 only 0.2% was fraudulently claimed by PIP claimants,” he added.
Kendall replied: “People who are genuinely entitled to claim benefits have nothing to worry about from this Bill, but we do believe that £7.4 billion wasted every year on benefit fraud must be cracked down on.”
Abrahams said that through her work on the work and pensions committee, she has found that disabled welfare claimants are the least likely to claim what they are entitled to in the system benefits system — and this Bill could make it worse.
“I worry that many of these disabled claimants are receiving less than they are entitled to, but to many, the Bill will be seen as more evidence not to trust the DWP, and not to engage,” she said.
“What do ministers consider an acceptable level of innocent people who will be investigated?” she added.
Liberal Democrat work and pensions spokesman Steve Darling said he believes Labour should withdraw the Bill, calling it “far too much of a Big Brother Bill”. “It is far too much of a snoopers’ charter, and I would suggest to the minister that they withdraw this Bill,” he added.
‘Very little oversight’
Kendall said the Information Commissioner’s Office has reviewed the government’s proposals and is “very clear the measure now more tightly scopes the information that can and cannot be shared, specifies much more clearly those in the scope of the power, requires a code of practice that will be a statutory code of practice before measures are taken”.
In further remarks on the “eligibility verification measure”, Kendall also said: “The DWP will not be able to access people’s bank accounts or look at what they are spending, we will not share any personal information with banks.
“Once an alert has been issued, any final decision about someone’s benefits will always be taken by a human being and the state pension will be excluded from the measure.
“There will also be independent oversight of this power on the face of the Bill, with a requirement to produce reports and lay them before Parliament.”
Shadow work and pensions secretary Helen Whately said that while the Conservatives support the aim of the Bill in principle, powers will be given to the DWP with “very little oversight”, citing the fallout of the Post Office scandal.
“The Horizon scandal is a reminder that computer systems don’t always get it right,” she added.
