Work and Pensions Secretary says that powers in Fraud, Error and Debt Bill will not give DWP access to claimants’ bank accounts or information on how they spend their money

However, Eligibility Verification measure will require banks and financial institutions to examine their own data sets to highlight where someone may not be eligible for the benefits they are being paid
Powers introduced by the new Fraud, Error and Debt Bill will not give DWP access to bank accounts or information on how claimants spend their money, the Work and Pensions Secretary Liz Kendall has said
In a written statement to Parliament yesterday, Ms Kendall confirmed that, as announced on 24 September 2024 –
‘… the government will bring forward a new Fraud, Error and Debt Bill in this Parliamentary session to be tough on criminals, fair for claimants and provide confidence to the taxpayer.’
Noting that some of the DWP’s fraud powers have not been updated for more than 20 years and are currently misaligned with other government departments and public bodies such as HMRC, the Work and Pensions Secretary went to on to say that –
‘The measures in this Bill will remedy that, giving DWP powers to:
Better investigate suspected fraud and new powers of search and seizure, so DWP can take greater control of investigations into criminal gangs defrauding the taxpayer.
Make changes to the penalties system, so that no one found to have committed fraud against the social security system avoids punishment, bringing increased fairness for claimants who do the right thing.
Allow DWP to recover debts from individuals who can pay money back but have avoided doing so, bringing greater fairness to debt recoveries.
Through our Eligibility Verification measure, require banks and financial institutions to examine their own data sets to highlight where someone may not be eligible for the benefits they are being paid. This will help DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity. Banks will only share very minimal information, and this will only be used by DWP to support further inquiry, if needed, into a potential overpayment.’
Ms Kendall also assured Parliament that the Eligibility Verification measure will not give the DWP access to any bank accounts or any information on how claimants spend their money, adding that –
‘The proposed new power instead helps verify benefit eligibility, using very limited information from banks and financial institutions. A human being will always be involved in any investigations and any decisions taken afterwards that affect eligibility or benefit awards, as they do now. This measure will not be used on the state pension.’
Ms Kendall concluded by saying that –
‘Further details on the legislation will be set out when the Bill is introduced to Parliament shortly.’
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