A significant expansion of the Department for Work and Pensions' anti-fraud measures has been unveiled, with pensioners now set to face bank account scrutiny similar to that already applied to Universal Credit claimants.
Targeted Investigations Extended to Pensioners
A new report from the Public Affairs Committee has detailed the DWP's intention to implement what it terms "targeted case reviews" for those receiving Pension Credit. This approach, already in use for Universal Credit, involves flagging potentially fraudulent payments and requiring individuals to provide evidence that their claims are legitimate.
The extension of these measures to cover pension credit recipients represents a substantial broadening of the DWP's investigative powers, raising concerns about potential overreach and the impact on vulnerable elderly citizens.
Concerns About Impact on Pensioners
Sir Geoffrey Clifton-Brown, chairman of the Public Affairs Committee, has expressed caution about the implementation of these new powers. He emphasised that while the DWP's authority to examine the bank accounts of suspected fraudsters is important, safeguards must be established from the beginning to prevent excessive intrusion.
"We will be monitoring the DWP closely if these measures are 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."
Campaign Groups Voice Opposition
Dennis Reed of Silver Voices, a campaign organisation dedicated to representing elderly people, has criticised the approach as unjustified. He described the decision to review pension credit claims as a "blunderbuss approach" that could have serious unintended consequences.
"What worries me is that people will be put off applying for pension credit," Mr Reed stated. "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 and Safeguards
A spokesperson for the Department for Work and Pensions has defended the new measures, highlighting the reforms as necessary to ensure correct benefit payments and recover overpayments. The DWP maintains that these powers will save billions of pounds for taxpayers.
"The powers in the Fraud, Error and Recovery Act have numerous safeguards and will be independently overseen," the spokesperson explained. "We will not have access to claimants' bank accounts when checking they are receiving the correct benefits."
The department has set ambitious targets for reducing fraud and error levels, aiming to achieve a rate of 2.8% by 2028-29, which would represent the lowest level since tax credits were introduced in 2003-04.
Broader Context of Benefit Scrutiny
This development follows the implementation of similar measures for Universal Credit claimants, where targeted case reviews have been used to identify and address fraudulent payments. The extension to pension credit marks a significant step in the government's ongoing efforts to combat benefit fraud across multiple support systems.
The announcement has sparked debate about balancing the need to protect public funds with ensuring that legitimate claimants, particularly vulnerable elderly individuals, are not discouraged from accessing essential financial support to which they are entitled.
