DWP to check people’s bank accounts for benefit errors from next year – who is targeted

The Department for Work and Pensions has unveiled a plan that will require banks to monitor accounts for suspicious activity in an effort to clamp down on benefit fraud, set to commence from April next year. Despite opposition against the mass surveillance of bank accounts, the Labour Government is pressing forward with its “snooper’s charter” as it targets welfare fraud and mistakes.

The Public Authorities (Fraud, Error and Recovery) Bill is designed to safeguard public funds by significantly reducing public sector fraud, error and debt. It introduces extensive new powers and measures such as eligibility verification and bank account monitoring.

Ministers maintain that the information obtained through these measures won’t be gathered under the assumption that someone is already guilty of a crime.

Experts believe that the DWP is initially targeting universal credit, pension credit, and employment and support allowance (ESA), according to Chronicle Live.

The Bill’s broad powers include financial penalties as an alternative to court proceedings. The Government has asserted that fines will act as “important” deterrents against public sector fraud, reports the Express.

Members of the House of Lords are scheduled to further examine the Bill on Wednesday (October 15) and again on October 21.

The Government has stated that the Bill will save £1.5bn over the next five years, stimulate investment in public services and protect the public purse.

This forms part of broader plans outlined in the Budget and Spring Statement to save £9.6bn by 2030.

The Bill has been met with scepticism from critics, including Disability Rights UK, Age UK, Privacy International, Child Poverty Action Group, and Big Brother Watch, all of whom have voiced concerns.

In a letter addressed to the former Work and Pensions Secretary Liz Kendall, they cautioned that the introduction of suspicionless, algorithmic surveillance on the public could potentially lead to a Horizon-style IT scandal.

This scandal involved the Post Office wrongly accusing subpostmasters of fraud, resulting in wrongful imprisonments as well as personal distress and financial losses for those implicated.

The letter warns: “Pensioners, disabled people, and carers shouldn’t have to live in fear of the government prying into their finances.”

However, a DWP spokesperson dismissed these concerns, stating: “These claims are false. These powers will be used appropriately and proportionately through robust new oversight and reporting rules and our staff will be trained to the highest possible standards.

“The information provided by banks is unrelated to DWP algorithms and any signals of potential fraud will always be looked at comprehensively by a member of staff.”