The Department for Work and Pensions (DWP) has been granted new powers to scrutinise the bank accounts of benefit claimants as part of a government crackdown on fraud. The measures aim to reduce the annual cost of benefit overpayments, which run into billions of pounds.
Which Benefits Are Affected?
The checks will focus on three main benefits: Universal Credit, Employment and Support Allowance (ESA), and Pension Credit. Officials will review account details only when there is a suspicion of fraud or incorrect payments. However, the move has raised concerns about privacy and government overreach.
How the Checks Will Work
Under the new rules, banks will be required to share information with the DWP, including savings and other income sources. This will help determine whether claimants meet eligibility criteria. For example, those on Universal Credit with savings over £16,000 may be flagged.
A DWP spokesperson stated: “Our Fraud, Error and Recovery Bill includes an Eligibility Verification Measure which will require banks to share limited data on claimants who may wrongly be receiving benefits. As well as tackling fraud, the new powers will also help us find genuine claim errors sooner, stopping people building up unmanageable debt.”
Privacy Concerns
Critics argue that the powers are too intrusive. Sir Geoffrey Clifton-Brown, chair of the Public Accounts Committee, warned: “Make no mistake, the DWP’s new powers to reach further into citizens’ lives are significant. It is essential that these extensive new powers have the risk of overreach mitigated against right from the outset.”
The DWP insists that the measure does not grant access to all bank accounts, only those where there is a specific reason to investigate. The government maintains that the changes will protect public funds and reduce errors.
