DWP to be given new powers to take money from bank accounts and payslips in fraud crackdown
by Catherine Addison-Swan, Levi Winchester · ChronicleLiveThe Department for Work and Pensions (DWP) is reportedly set to be given new powers to take money directly from bank accounts or payslips as part of a crackdown on fraud.
Benefit fraud investigators currently need permission from a court to deduct money from someone's wages or bank account, but this could change as new measures are introduced in the Government's new Fraud, Error and Debt Bill, according to the Sunday Telegraph. The Bill, which was first announced by the Prime Minister in September, is intended to save £1.6 billion over the next five years by "modernising" the DWP.
Under the new plans, investigators will also be given the ability to access information about suspected fraudsters from all private companies, not just banks, utilities and employers. However, these new rules will not extend to the State Pension, The Mirror reports.
Writing in the Sunday Telegraph, Work and Pensions Secretary Liz Kendall said it was "absurd" that investigators' powers at DWP had not been updated for 20 years. She said: "My team are still, in 2024, sending letters to gather evidence for those suspected of welfare fraud, slowing them down to a snail’s pace when they could be shutting down serious fraud cases.
"Our bill will give them similar powers as HMRC to investigate fraudsters - it's time we give them the tools they need for the fight," the minister added.
However, the plans have been criticised by campaigners, with Big Brother Watch describing them as "Orwellian" and a threat to privacy. Silkie Carlo, director of Big Brother Watch, said: "This blank cheque to force private companies to snoop and report on the country's poorest citizens to the state is intrusive, excessive and will create a culture of fear among millions of people claiming benefits."
Ms Kendall dismissed claims that the Government would be "snooping" on bank accounts as "nonsense" and insisted there would be human oversight of automated alerts flagging potential fraud. She said the enhanced information-gathering powers would allow the state to "stop serious fraud in its tracks by making sure people really are who they say they are".
The Government previously said the DWP itself will not have access to bank accounts and the data it receives will not be shared with third parties. It claims fraud and error in the welfare system costs the taxpayer £10 billion a year, while the Chancellor is reported to be considering tax rises and spending cuts worth £40 billion at this month's Budget in order to avoid a return to austerity.
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