DWP Bank Account Powers to Target State Pensioners, MPs Issue Warning
The Department for Work and Pensions (DWP) has confirmed that its new bank account checking powers will include state pensioners, sparking significant concern among MPs and campaign groups. This revelation comes as part of a stark Public Accounts Committee (PAC) report published on Wednesday, which highlights the risks associated with the department's expanded authority.
New Powers Grant Direct Access Without Court Order
Legislation passed before Christmas grants the DWP unprecedented authority to recover money directly from individuals' bank accounts without requiring a court order. This measure forms a central part of the government's crackdown on benefits fraud and error. While the DWP emphasises that the Fraud, Error and Recovery Act incorporates "numerous safeguards" and will be "independently overseen," the PAC has raised serious alarms about potential overreach.
MPs Voice Concerns Over Targeting Vulnerable Pensioners
Sir Geoffrey Clifton-Brown, Chairman of the Public Accounts Committee, stated that the DWP's new powers to access bank accounts of suspected fraudsters must have "the risk of overreach mitigated against from the outset." He specifically warned that the committee would closely monitor the department if these powers are used unfairly against elderly pensioners.
"We will be on [the DWP's] backs if it is being used unfairly against elderly pensioners," Sir Geoffrey told The Telegraph. "We know that of all benefits, pension credit has the least amount of error and fraud in it. They have to be very careful with this targeted review. They are going to do it not only for pensioners but also for Universal Credit."
Campaign Groups Fear Deterrent Effect on Legitimate Claims
Dennis Reed, Director of Silver Voices, a campaign group representing elderly people, criticised the approach as a "blunderbuss approach which is not justified." He expressed particular concern that the scrutiny could deter eligible individuals from applying for pension credit, a benefit already underclaimed.
"What worries me is that people will be put off applying for pension credit," Reed said. "The take-up for pension credit is only around two thirds of people who should get it. This will worry a lot of people that their finances are going to be trawled over."
DWP Defends Measures with Emphasis on Safeguards
A DWP spokesman responded to the concerns by outlining the rationale behind the new powers. "We have introduced major reforms to ensure people are paid the correct benefits, to recover overpayments and to help save billions of pounds for the taxpayer," the spokesman stated.
The department reiterated that the Fraud, Error and Recovery Act includes multiple safeguards and will be subject to independent oversight. Importantly, the DWP clarified that it will not have direct access to claimants' bank accounts when verifying benefit eligibility. Instead, the focus remains on achieving an ambitious reduction in fraud and error levels to 2.8% by 2028-29, which would represent the lowest rate since the introduction of tax credits in 2003-04.
This development places state pensioners at the centre of a contentious debate between fraud prevention and the protection of vulnerable citizens, with MPs vowing to maintain rigorous scrutiny of the DWP's implementation of these new powers.
