The Department for Work and Pensions (DWP) has detailed the operation of significant new anti-fraud powers set to impact millions of benefit claimants across the UK. These measures, coming into force, grant investigators enhanced authority to scrutinise financial records and even contact a claimant's family members where fraud is suspected.
What the new DWP powers entail
A raft of new measures is being introduced to clamp down on fraudulent and incorrect payments within the benefits system. The most prominent change allows investigators to request bank account details for millions of claimants to verify they genuinely qualify for the payments they receive.
Initially, these eligibility checks will focus on people claiming Universal Credit, Employment and Support Allowance, and Pension Credit. However, the legislation permits the DWP to expand these checks to other benefits in the future.
Contacting family members and third parties
In cases of suspected fraud, DWP officials will wield significantly strengthened powers to demand information. Investigators can issue an 'information notice' requiring any person connected to a claimant under suspicion to hand over relevant details.
The law explicitly states that this could involve contacting "a member of that person’s family". A DWP spokesperson clarified that such requests can be made to a suspect's relative if information suggests the family member is, "explicitly or unknowingly", linked to the investigation.
The department stated this is already a "well-established process" for cases where a relative lives with the suspect or in instances of income-related fraud where a relative should have been included on a benefit claim but was not.
Furthermore, the new powers remove the previous restriction of only demanding data from a specific list of organisations. Now, the DWP can contact "any relevant third-party information holder" unless the information is legally exempt.
Direct recovery from bank accounts
The new legislation also includes a powerful provision for direct recovery of funds. Where a person owes money to the DWP and refuses to pay, investigators will have the authority to take money directly from their bank account.
Before doing so, officials must request at least three months of bank statements to confirm the individual has sufficient funds. The owed amount can then be deducted in a single lump sum or via instalments, depending on the debt size and available funds.
This marks a substantial shift, as current powers only allow the DWP to recover funds through deductions from ongoing benefit claims or via PAYE earnings. The new method enables the department to recoup money from individuals who have left the benefits system entirely.
A DWP spokesperson defended the new measures, stating, "Our information gathering powers have been in place for many years and are only used where there is a suspicion of fraud. This measure will modernise those powers, bringing them into the 21st century."
