The Department for Work and Pensions (DWP) is rolling out new powers aimed at cracking down on benefit fraud. These measures will grant investigators greater authority to demand information from claimants and, in cases of non-payment, directly seize funds from bank accounts.
New Powers and Scope
The new legislation applies to claimants of Universal Credit, Employment and Support Allowance (ESA), and Pension Credit. Under these rules, the DWP can contact banks to obtain details about accounts linked to specific benefits. However, the DWP will not have direct, unrestricted access to people's bank accounts.
The changes will take effect following a consultation period and after several codes of practice for the new measures have been approved by Parliament.
Expert Concerns
Stuart Morris, chief technology officer at compliance technology provider SmartSearch, expressed concerns about the potential impact on claimants. He stated: "There is a risk some claimants could feel anxious about the introduction of these powers, even when they have provided accurate information, because any system involving increased monitoring or automated checks can create concern if people don't fully understand how decisions are made."
Morris added: "Research shows that automated systems can flag legitimate cases as suspicious if they're not properly calibrated. The challenge for the DWP is ensuring their systems are accurate enough to catch fraud while minimising incorrect rejections of genuine claimants."
DWP Statement
A DWP spokesperson previously commented: "We have an obligation to protect public funds, with this legislation set to save the taxpayer £2.1 billion over the next five years, part of wider plans that will save £14.6 billion. The legislation includes an eligibility verification measure which will require banks to share limited data on claimants who may wrongly be receiving benefits. It does not involve access to benefit claimants' bank accounts."
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