The Department for Work and Pensions may soon have the authority to examine individuals’ bank accounts under new legislation aimed at combating benefit fraud and saving billions annually.
The UK Government, through the Department for Work and Pensions (DWP), is considering legislation that would allow it to access individuals’ bank accounts to combat benefit fraud. This initiative is part of the data protection and digital information bill, motivated by an effort to address an estimated annual loss of £8 billion due to benefit fraud and overpayments, particularly in the Universal Credit system. Sir Stephen Timms, the Chair of the Work and Pensions committee, has expressed reservations about the wide-ranging nature of this legislation, questioning its applicability to benefits such as the state pension and child benefit.
The DWP has asserted that the intended use of these new powers is strictly to curtail fraud and errors and is not aimed at surveillance. Present regulations permit the DWP to examine bank accounts only in cases of suspected fraud, with the obligation on claimants to report any changes in their financial circumstances that could affect their benefit eligibility.
The proposal has sparked debate over privacy concerns, with critics calling for a more detailed justification for such measures. The Government, meanwhile, maintains that these steps are essential for ensuring the fairness and effectiveness of the welfare system by preventing fraud and overpayments.
