The Department for Work and Pensions (DWP) will begin using new powers from October to withdraw cash directly from the bank accounts of benefit claimants who owe money, as part of a major government crackdown on fraud and overpayments.
The controversial measures, which have been described as 'spy' powers, will be launched over the coming weeks. Under the new rules, banks will be forced to hand over information about claimants' accounts, including details about the amount of savings and other forms of income, as statements are scrutinised.
Officials will use this information to check whether someone qualifies for the benefits they claim, and may also flag up cases where payments have been made in error.
Which benefits are affected?
The new powers will focus on Universal Credit, Employment and Support Allowance (ESA) and Pension Credit. The DWP has appealed to anyone in benefit debt to come forward and make contact before direct action is taken.
Concerns have been raised that the Government is going too far by directly targeting bank accounts. However, ministers argue that the scale of benefit fraud and the amounts lost every year cannot be ignored.
Government defends the crackdown
In a statement, the DWP said: "Previously, the DWP had few options to pursue people who were no longer claiming benefits or in PAYE employment, meaning some who could afford to repay were simply choosing not to. That loophole is now closed."
Work and Pensions Minister for Transformation Andrew Western added: "Hardworking taxpayers deserve a system that pursues those who deliberately dodge their debts, and that is exactly what these new powers deliver."
He continued: "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."
