DWP 'reassures' people on benefits over bank account checks

The DWP has rolled out new powers for staff and will begin to crackdown on benefit fraud.

The Department for Work and Pensions has issued "reassurance" to people on benefits who are panicking over the possible new bank account checks. The DWP has rolled out new powers for staff and will begin to crackdown on benefit fraud.

But reassuring those who claim benefits, the DWP says: "The Bill will also include safeguarding measures to protect vulnerable customers. Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms, to monitor these new powers.

"DWP will not have access to people's bank accounts and will not share their personal information with third parties." Silkie Carlo, director of Big Brother Watch, said yesterday: “Starmer’s benefits bank spying proposals sound alarmingly similar to the powers Labour fought just a few months ago in opposition."

READ MORE NS&I urges customers to fill out crucial document or risk losing Premium Bonds

“Everyone wants fraud to be dealt with, and the government already has strong powers to investigate the bank statements of suspects,” Carlo added. “But to force banks to constantly spy on benefits recipients without suspicion means that not only millions of disabled people, pensioners and carers will be actively spied on but the whole population’s bank accounts are likely to be monitored for no good reason.

“This is yet another insult to pensioners, an attack on Britain’s poorest people, and an assault on the presumption of innocence.” The crackdown comes after the DWP lost £7.4bn due to fraud in the benefits system last financial year. But this is a “small minority” of cases, with just 2.8% of welfare claimants found to be fraudulent.

By comparison, it is estimated that £23bn in benefits and financial support goes unclaimed each year. The new Fraud, Error and Debt Bill to “stop fraud in its tracks”, the Labour Party government and DWP have said this week.