Starmer vows swift action against benefit fraudsters | Welfare

Benefit fraudsters will be tackled faster under new legislation expected to save British taxpayers £1.6 billion over the next five years, the Prime Minister is expected to announce.

Keir Starmer is expected to pledge to “leave no stone unturned” as his government seeks to “rebuild our public services” during his speech to the Labour party conference on Tuesday, his first conference speech as prime minister.

Part of his speech includes the announcement of a new Fraud, Error and Debt Bill. It aims to modernise the Department for Work and Pensions (DWP) so it can recover money lost to fraud while protecting vulnerable claimants from spiralling debt.

It will also include powers to help officials track more sophisticated fraud. Labour said fraud and errors in the welfare system cost the country £10 billion a year.

Critics within the party responded to reports of the proposals saying it was “almost like George Osborne speaking again”.

In addition to the bill, the prime minister is also expected to announce plans for more extensive social measures to help people get back to work, with details set to be announced later this year.

Starmer is expected to say: “We’ll get welfare down because we tackle long-term sickness and get people back to work. We’ll make every penny work for you because we stamp out waste and crack down on tax dodgers.

“There will be no stone left unturned, no innovation ignored and no return to Tory austerity. We will rebuild our public services, protect working people and do it the Labour way. That is a promise.”

Tackling welfare fraud is part of the government’s wider fight against corruption, fraud and tax evasion. Plans have already been announced for a Covid corruption commissioner.

Starmer is expected to argue that savings made from tackling fraud could be redirected to other public services as his government tries to plug the £22 billion “black hole” left by his predecessors.

Among the measures included in the bill are new powers that will allow the DWP to take control of fraud investigations and recover money from those who could have repaid it but did not.

Labour also stressed that the bill would include protections for vulnerable welfare recipients and that staff would be trained to the highest standards in the proper use of the new powers.

Labour has also pledged to tackle tax avoidance, with Chancellor of the Exchequer Rachel Reeves saying the government will hire 5,000 extra compliance officers at HMRC.

Former Labour shadow chancellor John McDonnell, who is firmly on the left of the party, said Starmer’s message on the economy and spending was the same as that of the Conservative Party during austerity.

In an interview with BBC Radio 4’s Today programme, McDonnell, who was ousted by Labour when he voted against the government over the abolition of the two-child benefit cap, said: “If you close your eyes and listen to the language being used, it’s almost like George Osborne speaking in 2010 again.

“When you hear politicians talking about difficult choices or painful decisions, and then you hear some rhetoric about fraud and social security, it is literally a carbon copy of a speech that George Osborne made in 2010.

“What I am concerned about is the first measure that the government has actually introduced, a austerity measure on the winter fuel surcharge, which will cause immense hardship for many of my constituents.”

He added: “We were desperate to get rid of the Tories. I was so excited about the election of a Labour government, but I don’t believe what we’re hearing this week will actually inspire people around the goals we have as a party, which is to transform our society and end austerity.”

In an interview with Sky News, Chancellor of the Duchy of Lancaster Pat McFadden defended the focus on benefit fraud. He said: “It’s really important that when money is spent on benefits it goes to those who really need it, and where there is fraud in the system we try to stamp that out.”