DWP Granted New Powers to Access Benefit Claimants' Bank Accounts
The Department for Work and Pensions (DWP) has been granted controversial new powers that allow it to withdraw funds directly from the bank accounts of benefit claimants. This legislation is part of a broader crackdown on benefit fraud, enabling officials to monitor accounts linked to payments and recover money owed without court intervention.
Scope of the New Surveillance Laws
The new surveillance laws specifically apply to individuals claiming Universal Credit, Employment and Support Allowance (ESA), and Pension Credit. Banks and other financial institutions are now required to comply with DWP requests to provide information on these accounts. This includes checking for details such as excessive savings that might disqualify claimants from receiving benefits.
Under the legislation, the DWP can issue Eligibility Verification Notices (EVNs) to financial institutions. These notices mandate that banks examine their data on specified accounts and supply information to help verify a claimant's entitlement to benefits. If incorrect payments are identified, the DWP can then issue a direct deduction order to recover the funds directly from the individual's bank account.
Concerns Over Privacy and Overreach
These powers have come under intense scrutiny from the Public Accounts Committee, with Chair Sir Geoffrey Clifton-Brown acknowledging their significance. He stated that the powers "reach further into citizens' lives" and emphasized the need for the DWP to mitigate the risk of overreach. Critics argue that the legislation represents an excessive intrusion of state power into personal privacy.
Sir Geoffrey elaborated, "Make no mistake, the DWP's new powers to reach further into citizens' lives are significant. Our Committee firmly supports the Government in its responsibility to ensure people are paid the correct benefits. However, it is essential that these extensive new powers—including the compulsion of disclosure over banks and the recovery of funds without court aid—have the risk of overreach mitigated from the outset."
Broader Implications and Committee Findings
The Public Accounts Committee's report highlights broader issues within the DWP's approach to benefit fraud and error. It finds that current efforts to address unacceptable levels of fraud are insufficient and that more could be done on a cross-government basis to improve payment accuracy. The report also notes that the Department has not adequately addressed official error, instead focusing predominantly on claimants.
This scrutiny follows a recent apology from the DWP's Permanent Secretary to carers who were wronged by the Department, underscoring the potential impact of wrongly-implemented powers on people's lives. The new powers, while aimed at reducing fraud, raise significant questions about balance and oversight in governmental authority.
