New DWP plans to claw back overpayments directly from claimant bank accounts
Ministers are set to unveil plans for new laws which mean they will be able to reclaim money from bank accounts in instances of benefit fraud. The Department for Work and Pensions (DWP) has announced that new planned powers will mean that money can be reclaimed from people who have committed fraud and are not on benefits or PAYE (Pay As Your Earn).
Work and Pensions Secretary Liz Kendall has said legislation will “make sure” that people who “seek to cheat” the system are held accountable. However, the UK Government has said that the powers will only be used as a last resort and will allow the ability to recover debt from people who have the means but have refused to pay the money back.
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The Department added that there will be safeguarding and oversight measures introduced along with staff training on the use of any new powers.
Ms Kendall said: “This Government will not tolerate fraud and waste in the welfare system as we make it fit for the 21st century as part of our plan for change. The public expects this of us, and we are delivering for them.
“People who seek to cheat the system should know, our new powers will help us to catch you out and make sure you are held accountable.
“We will also introduce new powers to minimise overpayments to benefit claimants so that hardworking families up and down the country know their money is being protected.”
The Conservatives have claimed the announcement is the UK Government trying to “distract” from negative headlines.
Conservative shadow work and pensions secretary, Helen Whately MP, said: “The Chancellor is clearly desperate to find any savings ahead of what may in fact be a mini-Budget because she needs to repair the damage she has inflicted with her disastrous budget last year.”
