DWP to take money straight from bank accounts and payslips in new benefit crackdown

Under current rules, investigators need a court order before they can deduct money from someone’s wages or bank accounts - but new measures are expected to be included in a new Bill

Department for Work and Pensions (DWP) benefit fraud investigators will be given new powers to take money directly from bank accounts or payslips, it has been reported.

Under current rules, investigators need a court order before they can deduct money from someone’s wages or bank accounts - but new measures that will make it easier for them to recoup money from benefit fraudsters are expected to be included in the new Fraud, Error and Debt Bill, according to the Sunday Telegraph.

Investigators will also be given the ability to access information about suspected fraudsters from all private companies, not just banks, utilities and employers - but the new rules will not extend to the state pension. The DWP is looking to save £1.6billion over the next five years as part of a new crackdown on benefit cheats.

Writing in the Sunday Telegraph, Work and Pensions Secretary Liz Kendall said it was “absurd” that investigators’ powers had not been updated in the last 20 years. 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”.

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.”

However, the plans have been slammed 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. 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.

The Government claims fraud and error in the welfare system costs the taxpayer £10billion a year. The new Fraud, Error and Debt Bill a continuation of plans drawn up by the former Tory Government. The new Bill focuses around giving the DWP greater powers to access financial data that may help identify benefit fraud.

This year, a criminal gang was jailed for more than 25 years after falsely claiming more than £53million in Universal Credit. This was the largest benefit fraud case seen in England and Wales. The Government says that nature of fraud has also become more sophisticated, meaning without new legal powers, DWP cannot properly keep pace with the changing nature of fraud to tackle it robustly enough.