The Department for Work and Pensions (DWP) has implemented new powers under the Public Authorities (Fraud, Error and Debt) Bill, allowing it to request financial information from benefit claimants' bank accounts and directly recover funds in certain cases. The measures, described by the government as the “biggest fraud crackdown in a generation,” aim to save £1.5 billion by 2029/30.
The key provision, the Eligibility Verification Measure, enables DWP agents to issue notices requiring banks and financial institutions to share account holder details such as name, date of birth, sort code, and account number. Banks must comply or face penalty notices, though the DWP says transaction information will not be requested. The measure is intended to verify eligibility for benefits like Universal Credit, where savings over £16,000 generally disqualify claimants.
Additionally, the DWP gains controversial powers to issue Direct Deduction Orders, allowing it to take money directly from earnings or bank accounts. Baroness Maeve Sherlock, DWP minister, estimated that between 5,000 and 20,000 such orders will be made annually. The powers will be phased in over 12 months, starting with a smaller number of banks.
Critics have condemned the measures as intrusive. Big Brother Watch warned of “mass financial surveillance,” while Mikey Erhardt of Disability Rights UK said the bill “poses a serious risk to Disabled and marginalised people,” arguing it treats claimants as “numbers on a spreadsheet.” Minister for Transformation Andrew Western MP defended the powers, stating they are essential to “identify, prevent and deter fraud and error” and ensure a trustworthy benefits system.
