DWP Bank Account Checks to Commence After February 27 Deadline
The Department for Work and Pensions is advancing with controversial powers to access bank accounts and seize funds from benefit claimants, with new checks set to begin after February 27. According to recent revelations, these measures could impact as many as 100,000 individuals within the first year of implementation.
Targeting Benefit Overpayments and Fraud
This crackdown, driven by the Labour Party government's concerns over escalating welfare payments, will primarily affect recipients of Pension Credit, Universal Credit, and Employment and Support Allowance. The DWP is currently in a consultation phase, which concludes on February 27, after which the powers will be rolled out under proposals aimed at reducing fraud and errors within the benefits system.
In guidance released ahead of the checks, the DWP stated, "DWP will be gradually rolling out the use of the Eligibility Verification Measure in a test and learn environment to allow for sufficient time for business to establish best processes." The department estimates that, once fully operational, this measure will identify between 50,000 and 100,000 overpayments annually.
Financial Implications and Savings Projections
The Office for Budget Responsibility has validated DWP estimates, projecting that this initiative could deliver savings of up to £940 million over the next five years. Once fully implemented, the DWP anticipates annual savings of approximately £500 million, highlighting the significant financial stakes involved in this policy shift.
Charity Concerns Over Stigma and Privacy
However, the move has sparked criticism from charities and advocacy groups. Claire Atchia McMaster, director of income and external affairs at Turn2us, a charity supporting those in financial hardship, expressed concerns to Yahoo News. "Fraud needs to be addressed proportionately, and the government is right to focus on criminal gangs exploiting the system," she said. "However, this proposed legislation risks fuelling stigma and deterring people from claiming the support they need. Every day, we hear from people too afraid to apply for help, fearing mistakes, debt or shame."
McMaster warned that automated decision-making without transparency could exacerbate financial hardship and that sweeping powers to monitor personal data might violate privacy rights. "We need a benefits system that offers support, not suspicion. One that is simplified, transparent, and free from stigma, so everyone can access the help they need," she added.
Disabled Community's Trust at Low Ebb
Disability charity Scope also voiced alarm, noting that disabled people's trust in the DWP and the benefits system "is at an all-time low and needs rebuilding." A spokesperson emphasized, "The rising cost of living has already pushed disabled people beyond breaking point," suggesting that these new measures could further strain vulnerable populations.
As the February 27 deadline approaches, the debate intensifies over balancing fraud prevention with the rights and dignity of benefit claimants, setting the stage for a contentious rollout of these enhanced surveillance powers.
