- Report (1st Day)
- 3:53 pm
- Scottish Legislative Consent granted, Welsh Legislative Consent sought
- Clause 1: Core functions of the Minister for the Cabinet Office
- Amendment 1
- 1: Clause 1, page 1, line 13, at end insert— “(e) creating a whistleblowing reporting channel for cases of fraud against public authorities which—(i) guarantees confidentiality and anonymity if requested,(ii) includes clear definitions of who is a whistleblower in cases of fraud against public authorities,(iii) provides a process to update whistleblowers in cases of fraud against public authorities, and(iv) protects whistleblowers in cases of fraud against public authorities from retaliation and detriment.”
- My Lords, I have tabled Amendments 1 and 20 in this group to raise again the issue of whistleblowing. Sadly, I do not think it is necessary to repeat in any detail why the existing whistleblowing framework is completely inadequate. We have to look only at the scandals of the Post Office, contaminated blood, Letby, the Hillsborough cover-up, the fake costings for HS2, the mis-selling of PPI, mini-bonds and now car finance. Those are just a few of the very real outrages and tragedies that could have been nipped in the bud if we had had a system that, in actuality and effectively, protected whistleblowers who spoke out and ensured the investigation of their disclosures. Most importantly, the victims of these many scandals would have been spared, but also the taxpayer would have been protected from huge compensation payouts.I believe strongly that the Public Sector Fraud Authority, sitting as it does under the Cabinet Office and with its investigative powers, is very well placed to be the hub of a proper framework—I would call it an office of the whistleblower, but that is not a precious issue—and at least to act as a hub for whistleblowing protection and investigation across the whole of the public sector. It could provide proper guidance to government departments and agencies, set standards for proper whistleblowing protection and redress, ensure investigation when appropriate, and provide the consistency, clarity and ease of use that are essential to effectiveness.I realise that the amendments I have tabled are inadequate to this task, and what I seek from the Government is a conclusion that there is real progress in this direction. The Government have increasingly recognised the importance of the issue, and the Minister herself—I have to give her real credit—has commendably talked about the importance of whistleblowing. Collectively, the House has made progress in the Employment Rights Bill on limiting the abuse of non-disclosure agreements and in the Armed Forces Commissioner Act in developing a whistleblowing framework for the commissioner which will possibly extend to all of defence.
- My Lords, I begin by thanking both Ministers opposite, and noble Lords from across the House, for their engagement with us on the substance of this Bill since we entered Committee. We have had some very valuable discussions and I welcome that the Government have approached this with a view to compromise and listening to noble Lords from across the House on the Bill. I hope we can conclude Report in the same spirit and I look forward to the discussions we shall have in these sessions.We on these Benches welcome that we are starting Report by discussing an important issue, and I thank the noble Baroness, Lady Kramer, for bringing forward these two amendments. Both amendments speak to a common principle that individuals who come forward with evidence of wrongdoing should be able to do so safely, confidently and with the assurance that their actions will lead to meaningful action rather than personal detriment.The decision to do the right thing and report wrongdoing is far from an easy one for anyone to make. To come forward with evidence of fraud is often to put oneself at considerable risk of losing employment, damaging one’s reputation or straining relationships. If we expect people to do the right thing then it is incumbent on us to ensure that the system does right by them in return. Whistleblowers are very often the first line of defence against fraud. They can identify irregularities and provide information that would otherwise remain hidden—information that the Public Sector Fraud Authority will need in order to act swiftly and effectively. That is why it is so important that individuals know that they will be listened to, supported and protected. Only then will they feel able to come forward and only then will we be able to tackle fraud before it escalates.In addition to the channels set out in Amendment 1, this principle links directly to the second amendment before us, Amendment 20, which proposes the establishment of an office of the whistleblower for public sector fraud. The purpose of such an office would be to oversee and safeguard the process of whistleblowing, to ensure that concerns are acted on and that those who raise them are not left exposed or ignored. We understand that the noble Baroness has likely brought this proposal to emphasise the importance of the issue rather than to suggest this particular structure as the final answer. We shall, of course, be very interested to hear how the Minister will meet the challenge set on this question.
- 4:00 pm
- I would be grateful if the Minister could use this opportunity to set out clearly how the framework envisaged under the Bill would work in practice to protect and honour those who come forward. While we may not believe that a statutory office of the whistleblower in the precise form proposed is necessarily the right approach, the principle behind it is unassailable. Whistleblowers must know that their efforts will be taken seriously, that they will be shielded from retaliation, and that their courage will help protect the public purse rather than be punished.
- The fight against fraud depends as much on human integrity as it does on institutional power. We should do everything we can to ensure that those who act with integrity are supported and not silenced. For that reason, I hope the Government will give serious consideration to the merits of these amendments and to the broader protections that underpin them and answer the questions that have been raised.
- My Lords, so we begin Report. I thank all noble Lords for their genuinely constructive engagement on this important Bill, as we seriously engage in efforts to protect taxpayers’ money—something I know every Member of your Lordships’ House cares vehemently about. I especially thank the Opposition Front Benches, who have given much of their time to make sure this works. I hope that they will see, through the responses from the Government today, that we have tried to listen and make as many amendments as possible to make sure this Bill is effective and will work in practice.Once again, I warmly welcome the amendments tabled by the noble Baroness, Lady Kramer, on the important issue of whistleblowing, as I did in Committee. The noble Baroness is committed and diligent in this area. As ever, she has proved to be tenacious and determined, but with due cause, ensuring that we can prevent some of the appalling scandals she named.It is clear that protections for whistleblowing are a key aspect of counterfraud investigations. A 2023 National Audit Office report into whistleblowing showed that a total of 41 organisations employing civil servants recorded and reported 939 concerns over a three-year period. Fraud was consistently the most common category, representing 39.9% of all concerns across the three years. It is only right that the PSFA closely considers its role in this landscape. As such, I am pleased to have an opportunity to place on record our efforts since your Lordships last debated the issue. We are listening to your Lordships’ House. We are doing everything we can to ensure that both this legislation and the work of the PSFA are as effective and impactful as they can be.Officials across government have come together to understand what can be done in the public sector fraud whistleblowing space. In particular, the PSFA Bill team has worked with the other Bill teams, where this important issue has also been raised recently in your Lordships’ House, to ensure that departments work in partnership to deliver a coherent response.
- My Lords, the Minister has described some real momentum. As I say, we would always want more; when we put down amendments, we have an ideal target in mind, but this is an area where progress matters. I thank the Minister and I will indeed withdraw my amendment.
- Amendment 1 withdrawn.
- Clause 2: Interaction with other public authorities etc
- Amendment 2
- 2: Clause 2, page 2, leave out line 10 and insert— “whether at the request of that public authority or, where the Minister considers it necessary in the public interest, on the Minister’s own initiative.”Member's explanatory statement This would enable the Minister for the Cabinet Office, through the PSFA, to undertake proactive investigations or recovery actions in respect of suspected fraud against a public authority, without requiring a prior request from that authority, while preserving the authority’s own fraud functions under subsection (5).