Indeed, that is correct. I hope that is helpful and gives the noble Lord reassurance. To clarify, we have our normal business-as-usual processes so, where we are able to—with the restriction of not at present being able to use the banks and financial institutions as a conduit—we have those powers. However, obviously, as has been made clear by the ICO, there is no alternative to needing the help of banks and financial institutions to go further in tackling the ever-greater sophistication of fraud.
The noble Baroness, Lady Sherlock, asked whether we could issue an AIN to a bank other than that into which the benefit is paid. The answer is no. The power is exercisable only in respect of a matching account that meets the criteria in an AIN and receives a benefit payment. If this is not the case, the Secretary of State cannot require them to supply that information.
When it comes to issuing an AIN, DWP will be able to exercise these powers only for payments for which it is responsible. This means that DWP cannot exercise this power with some benefits that fall under the legislation, such as child benefit, as was mentioned on Monday. I know that the noble Baroness, Lady Sherlock, raised this issue. As I committed to do on Monday, I will provide in writing more detail on the scope of the measure and on these limitations, which will require more time.
I will also ensure that my letter is clear on how the measure will impact appointees, joint claims and other such accounts. I am well aware that a number of questions were asked about this matter on Monday but, in the interests of time, I will move on.
I turn to proofs of concept. I also want to speak about our approach to delivery, in particular how we plan to test delivery before we gradually scale up operational delivery; I am aware of the time, but I hope that the Committee will indulge me. Our planned period of “test and learn” will build on our learning from our two previous proofs of concept, which we conducted in 2017 and 2022. These demonstrated the effectiveness of this approach and contributed to the OBR’s certification that the measure will save up to £600 million over the next five years.
The two proofs of concept that I mention are important. I hope that the Committee will be interested to read the results, which demonstrate why we need to do this. Without further ado, let me say that I will set out the details of these two examples in the letter as well, which will, I hope, be helpful.
The noble Lord, Lord Vaux, who is in his place, the noble Lord, Lord Clement-Jones, and the noble Baroness, Lady Sherlock, spoke about the regulatory impact assessment on Monday. I just want to use this time to reassure them on that. More information on these proofs are contained within the RIA, which was, as noble Lords will know, green-rated by the RPC.
On “test and learn”, we have a clear view on how this power may work. We are already working with third parties in readiness to commence the formal “test and learn” period in early 2025 and preparing the code of practice in advance of that. I will come on to that in just a second—in fact, I will come on to it right now, given the time. I shall refer to Amendments 225 to 232 in the name of the noble Baroness, Lady Sherlock.
To support the delivery of this measure, we will produce the code of practice to help define how the measure will work, with explanations. I assure the noble Baroness and the Committee that the code of practice is already in development; we are working positively with around eight leading financial institutions through an established working group that meets regularly to shape the code. We are fully committed to continuing that work; I think I covered the timing of that earlier in my remarks. Accepting Amendments 225 and 226 in the name of the noble Baroness would therefore, we believe, have minimal effect. I am clear that DWP will produce a code of practice, which will be consulted on; I have also set out the sort of detail that it will contain. Accepting them may also potentially restrict our ability to develop the code of practice further as we understand more from “test and learn”.
Because we are developing this collaboratively with banks, I am not yet in a position to share the draft code, as I mentioned; I have given certain reassurances on that. However, I can say that it will provide guidance on issues such as the nature of the power and to whom it will apply. It will also provide information on safeguards, cover data security responsibilities and provide information on the appeals processes should a third party wish to dispute a request. We will engage with SSAC, to help the noble Baroness, Lady Sherlock, as we bring forward the affirmative regulations. On balance, I believe that the best course is to consult on the code of practice rather than rushing to define it now.
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I turn to the amendment on including the criteria for issuing account information notices. It is right that I should be open on this, but I need to be mindful, as mentioned on Monday, that the more that is said publicly on this, the more information we may pass into the hands of fraudsters.
Annual reporting was another point raised by the noble Baroness. Briefly, I reassure noble Lords that this measure will be rolled out carefully and slowly. To report annually to Parliament on the measure, as has been suggested, is unnecessary and burdensome, as it will pre-empt our safe and gradual delivery and potentially provide only limited, incomplete information, in the early stages of delivery.
I hope that I have gone some way to answer the questions. I will look very carefully at Hansard, as I am particularly concerned that I have addressed the questions raised by the noble Baroness, Lady Sherlock.