The Department for Work and Pensions (DWP) is set to gain new powers to monitor benefit claimants' bank accounts as part of a major crackdown on fraud. The measures, included in the Fraud, Error and Debt Bill currently passing through Parliament, will allow the DWP to demand banks disclose financial details of claimants.
Under the Eligibility Verification Measure, DWP agents can request information such as name, date of birth, sort code, and account number, as well as whether the account meets benefit eligibility rules. The powers will be rolled out in stages over the next 12 months, starting with a small group of banks.
The DWP says the crackdown aims to recover an estimated £1.5 billion over five years by tackling fraud and correcting errors early. A spokesperson stated: 'This measure does not give DWP access to any benefit claimants’ bank accounts.' However, critics argue it establishes a 'system of mass financial surveillance'.
Baroness Maeve Sherlock, a DWP minister, confirmed that the department will also gain powers to directly seize money using Direct Deduction Orders, similar to those used by HMRC. The DWP anticipates making between 5,000 and 20,000 deduction orders annually.
Work and Pensions Secretary Liz Kendall maintains the powers are necessary to 'restore trust in the welfare system', but opposition from privacy advocates is expected to intensify as the bill progresses.
