The Department for Work and Pensions (DWP) will force banks to share account information of benefit claimants from October under new anti-fraud rules. Banks will be compelled to comply with requests from the Government department, and they will even be able to withdraw cash directly from accounts.
New powers target benefit fraud
Under so-called 'spy' powers, officials will look for details such as how much savings benefit claimants have. This is to check whether someone qualifies for benefits they claim to receive. The tough action is part of a major new crackdown on benefit fraud and overpayments.
The DWP will target Universal Credit, Employment and Support Allowance (ESA) and Pension Credit. Households in benefit debt who owe money have been urged to make contact by October before direct action starts.
Concerns over government overreach
Concerns have been raised that the Government is going too far by directly targeting bank accounts. But ministers say the scale of benefit fraud and the amounts lost every year cannot be ignored.
Work and Pensions Minister for Transformation Andrew Western said: "Hardworking taxpayers deserve a system that pursues those who deliberately dodge their debts, and that is exactly what these new powers deliver."
DWP urges debtors to come forward
Western added: "To anyone with an outstanding debt - our door is open and DWP will always work with you to find an affordable way to repay. But for those who can pay and won’t - we’re going further than ever before to claw back cash and crack down on fraud."
The new measures are expected to significantly increase the DWP's ability to recover overpaid benefits. Claimants with outstanding debts are advised to contact the DWP before October to arrange a repayment plan and avoid direct deductions from their accounts.
