Public Authorities (Fraud, Error and Recovery) Bill

Written evidence submitted by John Stockley to The Public Authorities (Fraud, Error and Recovery) Bill Committee (PAB01)

Introduction:

I am writing to express my serious concerns regarding the potential impact of the Public Authority (Fraud, Error and Recovery) Bill on disabled people, particularly those who are independently living and in receipt of Direct Payments. I believe the Bill, as currently drafted, is disproportionate and risks causing significant hardship and injustice to a vulnerable group.

Disproportionate Impact on Disabled People Receiving Direct Payments:

My primary concern centres on the Bill's provisions regarding access to bank account information. For individuals receiving Direct Payments, these funds are held in trust and are specifically designated for meeting their assessed care and support needs. It is crucial to understand that Direct Payment recipients often accumulate underspends, which are built into the Direct Payment framework as financial contingencies. Furthermore, under the Care Act 2014 Guidance, accumulated underspends can include up to 12 weeks’ worth of funding. This accumulated money, while intended for future care needs, can inadvertently push recipients of disability benefits over the capital limit, solely due to the structure of Direct Payments.

Concerns Regarding Bank Oversight and DWP Access:

Allowing banks to police benefit regulations is inherently problematic. Bank staff are not trained in the complexities of social security law and are ill-equipped to make informed judgments about the legitimacy of funds held within Direct Payment accounts. This risks misinterpretations and potentially wrongful accusations of benefit fraud or error, leading to the freezing of essential funds and severe disruption to individuals' care arrangements.

Granting the Department for Work and Pensions (DWP) direct access to personal bank accounts raises serious concerns regarding data protection and human rights. Such access potentially infringes upon the Data Protection Act 2018 and Article 8 of the Human Rights Act, which guarantees the right to respect for private and family life. The potential for misuse of sensitive financial information is a significant risk.

Risk of Injustice and Echoes of the Post Office Scandal:

Without robust safeguards, this Bill carries the potential for injustice on a scale comparable to the Post Office scandal. Innocent individuals, particularly disabled people managing their care through Direct Payments, could face unwarranted scrutiny, financial hardship, and reputational damage due to errors or misinterpretations of complex benefit regulations. The power imbalance inherent in the proposed system, coupled with the potential for inaccurate assessments, creates a fertile ground for injustice.

Recommendations:

I urge the Public Bill Committee to consider the following recommendations to mitigate the disproportionate impact of this Bill on disabled people:

· Exemption for Direct Payment Accounts: Direct Payment accounts, clearly designated as such, should be exempt from the provisions allowing access to bank account information.

· Specialised Training for Bank Staff: If bank oversight is deemed necessary, mandatory and comprehensive training on benefit regulations, specifically regarding Direct Payments and the Care Act 2014 Guidance, must be provided to relevant bank staff.

· Strict Data Protection Protocols: Rigorous and transparent data protection protocols, including clear limitations on access and usage, must be implemented and enforced to safeguard individuals' privacy rights.

· Independent Appeals Process: An independent appeals process, with expertise in disability rights and social security law, should be established to ensure fair and impartial review of any decisions related to alleged fraud or error.

Conclusion:

The Public Authority (Fraud, Error and Recovery) Bill, in its current form, poses a significant threat to the well-being and independence of disabled people relying on Direct Payments. I implore the Committee to carefully consider the potential consequences of this legislation and implement the necessary safeguards to prevent a repeat of past injustices. Protecting the rights and dignity of disabled people must be a priority.

February 2025.