The Department for Work and Pensions (DWP) has issued a statement providing clarity and guidance regarding the potential suspension of benefits such as Pension Credit, Universal Credit, and Employment and Support Allowance (ESA). This update comes amid concerns about new powers being granted to the DWP to check claimants' bank accounts as part of a crackdown on fraud.
New Powers for Bank Account Checks
The DWP is set to acquire enhanced authority to scrutinize bank accounts, targeting the three benefits with the highest fraud rates: Universal Credit, Pension Credit, and ESA. However, the department has moved to reassure claimants that having their bank accounts checked will not lead to automatic suspension of payments.
DWP's Assurance on Suspensions
In its statement, the DWP emphasized: "The DWP has been clear that information received following an Electronic Verification of Need (EVN) is shared without any presumption of wrongdoing and will not trigger any automatic suspension." The department further explained that all decisions resulting in changes to a person's entitlement will be made by a trained DWP staff member. Any EVM data is considered alongside all other relevant information before determining whether further action is required.
Process for Claimants
If further clarification is needed about a claimant's circumstances, the DWP will notify the claimant about the information that led to the contact. The department will request information relevant to the claimant's eligibility, and the claimant will be given an opportunity to respond, ensuring they can provide additional information before any decisions about entitlement are made. If the DWP considers that there is a doubt about a claimant's entitlement following receipt of EVM information, payment of the benefit will not be suspended until the issues have been considered in line with existing suspension practices, which include hardship considerations. Where a claimant's benefit is suspended, they will be told why.
Transparency and Code of Practice
Respondents to a consultation asked the DWP to publish an exhaustive list of all non-EVM information that would be considered alongside EVM information when making entitlement decisions. However, the DWP will not publish this level of detail in the Code of Practice, as cases are reviewed and assessed on an individual basis. Nevertheless, the government recognizes the importance of providing further clarity about the types of checks that may be undertaken. As a result, the Code has been updated to include further explanation and examples of how DWP staff may verify whether a claim is correct.
Independent Review
It is important to note that an independent reviewer will assess how the DWP uses this power and whether it has been effective in helping to identify incorrect payments of relevant benefits. Legislation makes clear that the power is to be used solely to assist in identifying incorrect payments and that EVM information alone cannot be used to make entitlement decisions or suspend a benefit payment. Where appropriate, the independent reviewer may choose to examine cases where claims have been suspended and where EVM may have been a contributing factor.
