The Department for Work and Pensions (DWP) has laid out the full, detailed plans for what it calls a "robust" and resolute crackdown on benefit fraud and error. Under the new Labour government, the department has been granted significant additional powers aimed at catching fraudsters, preventing incorrect overpayments, and safeguarding public funds.
New Powers and a £1.5 Billion Target
The central goal of this intensified strategy is to save the taxpayer a substantial £1.5 billion by the 2029/2030 financial year. This will be achieved through a combination of new legislative powers, access to advanced data, and modern investigative tools designed to identify fraud more effectively and recover money lost to overpayments.
Andrew Western MP, the Minister for Transformation, stated: "It is right that as fraud against the public sector evolves, the government has a robust and resolute response. The powers granted through the Bill will allow us to better identify, prevent and deter fraud and error, and enable the better recovery of debt owed to the taxpayer." He emphasised that delivering a benefits system people can trust is essential for both claimants and taxpayers.
Bank Data Checks and Eligibility Verification
A cornerstone of the new approach is the Eligibility Verification Measure. This will allow the DWP to obtain data from banks and building societies to help ensure those receiving benefits are entitled to the correct level of payment.
The government has been keen to stress the privacy safeguards in place. Under this measure, no personal information will be shared by the DWP, and the department will not have access to individuals' bank accounts or be able to see transaction histories or spending habits. The data will be used solely to verify eligibility, helping to prevent people from accidentally falling into debt due to overpayments and assisting the DWP in spotting potentially fraudulent claims.
Supercharging the Public Sector Fraud Authority
The crackdown extends beyond the DWP. The legislation, which is progressing through the House of Lords, also grants enhanced powers to the Cabinet Office’s Public Sector Fraud Authority (PSFA). This move is intended to transform the state's defences against organised fraud targeting public money.
Cabinet Office Minister Josh Simons declared: "Previous governments have sat back and accepted that fraud is inevitable. We will not. We are transforming the state’s defences against those who seek to defraud the taxpayer and restoring fairness."
He explained that the new law provides the PSFA and other government departments with the proactive tools needed to "pursue and recover billions of pounds lost to criminals and error." In a significant move related to pandemic fraud, the time limit for bringing a civil claim will be doubled to twelve years, a measure Simons said ensures "there is no hiding place for those who cheated the taxpayer during the pandemic."
The comprehensive plan signals a major shift in the government's approach to financial oversight within the welfare system, prioritising the protection of public money through technology and strengthened legal authority.
