DWP Bank Account Checks Could Extend to Non-Benefit Households
The Department for Work and Pensions (DWP) has confirmed that its new bank account monitoring powers could affect individuals who are not on benefits, particularly those who share joint accounts with claimants. This development is part of the Labour government's effort to reduce welfare error and fraud through the "Eligibility Verification Measure."
Joint Accounts at Risk
Under this measure, financial institutions will be required to share data on any account that receives a specified DWP benefit, as well as any accounts linked to it. The DWP admits that information on joint account holders may be shared in certain circumstances. If a benefit is paid into a joint account, the financial institution will share details about all accounts held by both individuals, as the bank may not know which person is the claimant.
Household Benefits Scrutiny
For benefits like Universal Credit, the capital held by everyone in the same household is relevant to eligibility. Consequently, the financial details of non-claimants sharing an account or household with a claimant may be scrutinised. However, the DWP stated that no information about other private accounts held solely by the non-benefit holder would be shared in this specific scenario.
Data Privacy Concerns
Critics have highlighted this "quirk" in the legislation as a significant privacy concern for UK households, as it brings individuals with no direct connection to the benefits system under DWP surveillance. The DWP will analyse the received data and has pledged that any information "not relevant to eligibility" will not be shared further within the department.
Notification and Implementation
The DWP has stated it will make claimants aware that their accounts and linked accounts are being monitored through "various means" ahead of the measure's implementation. Previous reports have indicated that the DWP will initially work with the UK’s top 15 financial institutions to monitor accounts. These include major banks like Barclays, HSBC, Lloyds, NatWest, and Santander.
Seizure of Cash Powers
The new powers also allow the DWP to directly seize cash from bank accounts if they suspect fraud, a move that campaigners say could lead to "catastrophic" consequences for families if mistakes are made. This crackdown is aimed at enhancing the integrity of the welfare system but has sparked debates over privacy and oversight.
