Clause 45

Welfare Reform Bill – in a Public Bill Committee at 6:00 pm on 28 November 2006.

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Local authority powers to investigate benefit fraud

Photo of Anne McGuire Anne McGuire The Parliamentary Under-Secretary of State for Work and Pensions

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.

Photo of Tim Boswell Tim Boswell Conservative, Daventry

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

Amendment agreed to.

Question proposed, That the clause, as amended, stand part of the Bill.

Photo of Adam Afriyie Adam Afriyie Conservative, Windsor

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?

Photo of Anne McGuire Anne McGuire The Parliamentary Under-Secretary of State for Work and Pensions

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.

Question put and agreed to.

Clause 45, as amended, ordered to stand part of the Bill.

Clause

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Secretary of State

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amendment

As a bill passes through Parliament, MPs and peers may suggest amendments - or changes - which they believe will improve the quality of the legislation.

Many hundreds of amendments are proposed by members to major bills as they pass through committee stage, report stage and third reading in both Houses of Parliament.

In the end only a handful of amendments will be incorporated into any bill.

The Speaker - or the chairman in the case of standing committees - has the power to select which amendments should be debated.

clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.

Amendment

As a bill passes through Parliament, MPs and peers may suggest amendments - or changes - which they believe will improve the quality of the legislation.

Many hundreds of amendments are proposed by members to major bills as they pass through committee stage, report stage and third reading in both Houses of Parliament.

In the end only a handful of amendments will be incorporated into any bill.

The Speaker - or the chairman in the case of standing committees - has the power to select which amendments should be debated.