DWP issues bank account check update and says one type of benefit will be exempt

Labour Party Work and Pensions Secrtary Liz Kendall says the new laws will be “proportionate and targeted” and will not apply to the state pension.

The Department for Work and Pensions has issued a new bank account check update - and says one type of benefit will be EXEMPT. Labour Party Work and Pensions Secrtary Liz Kendall says the new laws will be “proportionate and targeted” and will not apply to the state pension.

Ms Kendall said that the idea that the state will be “snooping” on people’s bank accounts as “nonsense”, adding: “We are taking bold steps to ensure this power is proportionate and targeted.” She added that there will be independent oversight of the new measures.

She said there will always be a “human to check” over fraud investigations to ensure they are always “right and necessary”. Under current rules, investigators need a court order before they can deduct money from someone’s wages or bank accounts.

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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 newspaper, which broke the story yesterday (October 20).

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

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.

It comes after 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.