Have your say on new DWP plans to ‘monitor’ bank account activity of people on benefits
A new poll by the Daily Record aims to find out whether the new Public Authorities (Fraud, Error and Recovery) Bill being put into legislation by the Department for Work and Pensions (DWP) should be able to ‘monitor’ benefit claimants' bank accounts. It’s important to be aware that the DWP will not have direct access to the bank accounts of millions of people on the State Pension or means-tested benefits including Universal Credit, Pension Credit and Employment and Support Allowance.
The measure will see the DWP work with banks to identify people who may have exceeded the eligibility criteria for means-tested benefits, such as the £16,000 income threshold for Universal Credit - and get that information to then investigate that claimant to prevent possible overpayments and potential cases of fraud.
READ MORE: DWP clarifies new powers to ‘monitor’ bank account activity of people on benefits
READ MORE: New DWP measures to tackle people fraudulently claiming PIP payments each month
Eligibility Verification Measure
The Department will also have powers to get bank statements from people they believe have enough money to pay back welfare debts, but are refusing to do so. The DWP, however, insists it will not have direct access to people’s bank accounts.
Work and Pensions Secretary Liz Kendall said the UK Government was “turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money”.
She said the measures would be backed up by new safeguards to ensure powers are used proportionately and safely, and that removing driving licences would be a “last resort”.
In a written statement to Parliament setting out the new Bill last month, she said: “The powers will not give DWP access to any claimant’s bank accounts, nor any information on how claimants spend their money. DWP will not share any personal information with banks or other financial institutions and a member of DWP staff will always be involved in any further investigations and decisions.”
Have your say
What do you think about the new measure? Share your opinion in our poll and the comments below. You can also join in the conversation in our Daily Record Money Saving Scotland Facebook group here.
New DWP measures to tackle fraud
The new Bill will deliver on the UK Government’s manifesto commitment to safeguard taxpayers’ money - ensuring every pound is spent wisely and effectively:
New powers of search and seizure - so DWP can control investigations into criminal gangs defrauding the taxpayer.
Allowing DWP to recover debts from individuals no longer on benefits and not in PAYE employment who can pay money back but have avoided doing so.
New requirements for banks and building societies to flag where there is an indication that there may be a breach of eligibility rules for benefits - preventing debts accruing.
All the powers will include strong safeguards to ensure they are only used appropriately and proportionately - including new inspection and reporting mechanisms.
DWP will have a clearly defined scope and clear limitations for the use of all the powers it is introducing, and staff will be trained to the highest possible standards.
The measures in this Bill will enable the Public Sector Fraud Authority to:
Reduce fraud against the public sector by using its expertise to take action on behalf of other departments, against those who attack the public sector.
Better detect and prevent incorrect payments across the public sector through new information gathering and sharing powers.
Use strong non-criminal sanctions and civil penalties to provide an alternative to criminal prosecution and to deter fraud.
Improve the government’s ability to recover public money, through new debt recovery and enforcement powers.
Use new powers of entry, search and seizure to reduce the burdens on the police in the most serious criminal investigations.
Improve fraud management in future emergencies by creating specialist time limited powers to be used in crisis management situations - building on lessons learned during COVID-19.
The Public Sector Fraud Authority will implement a ‘test and learn’ approach when utilising these powers, piloting different approaches and expertise to find the best way to tackle public sector fraud.
