The Department for Work and Pensions (DWP) has confirmed the full list of details it can request from banks under its new crackdown on benefits fraud. The Labour Party government has granted enhanced powers to the DWP, allowing officials to check bank accounts as part of efforts to reduce the rising benefits bill.
Under these new measures, the DWP will collaborate with banks and financial institutions, which will be required to flag signs of fraud from claimants. The DWP can issue an Eligibility Verification Notice (EVN) to leading banks, compelling them to hand over specific information.
Five Details Banks Must Provide
The EVN will require banks to disclose the following five pieces of information:
- Sort code
- Account number
- Account holder name
- Account holder date of birth
- Details about how the accounts meet the eligibility indicators specified within the EVN (for example, indicating that the total capital held across accounts exceeds a specified amount or dates of consecutive use outside the UK)
The final point is particularly significant as it could include bank balances. For instance, Universal Credit, one of the three benefits at the centre of the crackdown, has a strict savings limit. In Universal Credit, an individual's savings can affect their payment amount. Eligibility indicators in an EVN may be set to require financial institutions to return information about accounts that receive Universal Credit (or are linked to such accounts) and have more than £16,000, which is the upper capital threshold for Universal Credit.
Controversy and Criticism
The new powers have sparked fury among campaigners, with some branding the rules and checks as "Orwellian" and "dystopian." Big Brother Watch, a privacy advocacy group, has been among the critics. The DWP has spelled out these details in its guidance for the powers, seeking to reassure critics about the scope of the measures.
