The Department for Work and Pensions (DWP) is set to gain new powers to monitor bank accounts of benefit claimants under the Data Protection and Digital Information Bill currently debated in the House of Lords. The legislation would allow the DWP to check accounts of those receiving Universal Credit and state pensions, as well as any accounts 'connected' to them, regardless of suspicion of wrongdoing.
Peers have raised concerns that this could include landlords, parents, carers and partners. Labour's Lord Sikka warned that landlords might refuse to accept direct rent payments from housing benefit to avoid surveillance, potentially leaving tenants homeless. Conservative peer Lord Kammal added that banks might decide not to offer accounts to benefit claimants due to the onerous monitoring obligations.
A letter from 20 MPs and peers to the Science Secretary last month argued the measures would require banks to 'sift through tens of millions of bank accounts' covering around 40% of the population, reversing the presumption of innocence. They also warned that reliance on algorithms could lead to wrongful investigations and benefit suspensions, citing parallels with the Post Office Horizon scandal and the current Carer's Allowance overpayment crisis.
Former terrorism legislation reviewer Lord David Anderson criticised the lack of consultation and oversight, saying the vague powers risk legal challenges that could render them unusable. The DWP claims the new powers will save £600 million over five years by reducing fraud and overpayments.
