Anne McGuire (Parliamentary Under-Secretary (Disabled People), Department for Work and Pensions; Stirling, Labour)

I beg to move amendment No. 68, in clause 45, page 37, line 30, at end insert—

‘(1C) An authorisation made for a purpose mentioned in section 109A(2)(a), (c) or (d)—

(a) is subject to such restrictions as may be prescribed;

(b) is not valid in such circumstances as may be prescribed.’.

I shall not detain the Committee for long, but given that the hon. Member for Daventry alluded to this in an earlier discussion, I thought that it would be helpful to clarify the amendment.

It might be of interest to the Committee to hear that about half the fraud against housing benefit also involves fraud against another national benefit. Current rules permit local authorities to investigate fraud against housing benefit and council tax benefit, but not to investigate fraud against any of the national benefits administered by the DWP. The clause remedies that and will allow local authorities to investigate fraud against national benefits.

Our intention has always been that we will balance the powers with safeguards. The safeguards will allow the Secretary of State to ensure that local authorities do not misuse the powers. We have discovered a technical problem with our ability to set out the safeguards in regulations, and the amendment will rectify it. The safeguards will include limiting the type of benefit offence that a local authority may investigate, allowing particularly difficult or sensitive cases to be withheld from local authority action, and withdrawing the powers in case of misuse.

On the specific issue that the hon. Gentleman raised, tackling local fraud activity is, and will be, funded through the general administrative subsidy. However, when we place a new burden on local authorities, funding will be linked to the new burdens principle. I hope that that reassures him and indicates why we need the clause.

Tim Boswell (Daventry, Conservative)

That does give reassurance, and I have no objection to the amendment.

Adam Afriyie (Windsor, Conservative)

It seems that a new power is being granted to local authorities to investigate national benefit fraud cases. My one key concern is that it seems that the Secretary of State can ask a local authority to conduct an investigation. Where will the budget come from if local authorities are to conduct investigations into national benefit fraud?

Anne McGuire (Parliamentary Under-Secretary (Disabled People), Department for Work and Pensions; Stirling, Labour)

I thought that I answered that point when I answered the comment made by the hon. Member for Daventry. However, I shall have no problem repeating it. A local authority’s activity to combat fraud is funded through the general administrative subsidy. When we place a new burden  on local authorities, we will provide funding according to the new burdens principle. I hope that that provides the clarity that the hon. Gentleman seeks and that he will support the clause.