DWP plan to seize money from bank accounts 'risks repeating carer scandal'

A proposed plan to confiscate money from individuals' bank accounts as part of a benefit fraud crackdown could potentially mirror the scandal of carers being unjustly pursued for repayments, it has been suggested. One carer, who was compelled to return £1,600 to the DWP for breaching regulations while caring for her husband, expressed that she was 'made to feel like a criminal'.

It is believed that the Government intends to grant welfare investigators the authority to extract funds from both bank accounts and payslips in its upcoming fraud bill. However, concerns have been raised that individuals could be wrongly identified and targeted, resulting in money being taken from vulnerable people who are innocent.

Campaigners have raised the alarm, drawing attention to how carers looking after disabled family members have been criminalised for unknowingly claiming excessive amounts through carer's allowance overpayments. Strict regulations stipulate that those receiving carer's allowance, valued at merely £81.90 a week, are prohibited from earning more than £151 per week.

If a carer exceeds this limit, even by a small amount, they forfeit their entitlement and must repay the full sum, leading to some families being chased for up to £20,000. Katy Styles, an unpaid carer for her husband Mark, who suffers from motor neurone disease (MND), voiced her hope that the proposals would not result in a recurrence of the carer's allowance overpayments controversy.

"I'm hoping this is a crackdown on organised fraud, as opposed to penalising vulnerable individuals," the 55 year old from Cambridge, who initiated the We Care campaign group, expressed to i. "But I'm concerned about how robust protections to protect individual carers and disabled people might be.", reports the Express.

"Considering the Government has struggled to keep its own house in order, considering they couldn't sort out (carer's allowance) overpayments and allowed those to rack up, it's concerning. I'm worried about unintended consequences."

Mikey Erhardt, a campaigner at Disability Rights UK, described the bill as "a digital sledgehammer to crack the tiniest nut".

He continued: "These new powers would see millions deprived of the presumption of innocence, adding to the criminalisation we already face in a punitive welfare system."

Elizabeth Tait, an unpaid carer from Thames Ditton in Surrey, recounted being forced to repay over £1,600 to the DWP after inadvertently breaching the "confusing" earnings limit for carer's allowance. The former teacher shared that it was a "brutal experience" being "made to feel like a criminal" by the DWP.

Ms Tait – whose late husband had received personal independence payments (PIP) due to terminal cancer – voiced her hope that neither carers nor disabled people would be subject to intrusive investigations.

She told i: "I think disabled people should be exempt from this, because the assessment process to make claims is already so robust. To snoop on disabled people would be cruel."

"They should have to notify people and explain repayments, rather than take money straight out of people's bank accounts. There is a risk it will be implemented the wrong way". Ms Tait added: "The Government does make mistakes. There has to be a human element to any investigation – a real understanding of people's circumstances. Because innocent people have been tied up with people who are fraudulent."

New powers allowing direct deductions from bank accounts and pay slips of those who have over-claimed on benefits are expected to be outlined in the upcoming Fraud, Error and Debt Bill.

Work and Pensions Secretary Liz Kendall made statements hinting at updates and new authorities by noting it is "absurd" that such investigative powers have remained unchanged for two decades. She further argued: "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."

To offer assurances, the minister announced there would be independent oversight, ensuring "there will always be a human to check over fraud investigations to make sure any investigation is right and necessary".

The DWP stated last month that the proposed legislation wouldn't grant the Government access to individuals' bank accounts. However, it would "allow DWP to recover debts from individuals" and necessitate banks "to share data that may show indications of potential benefit overpayments".

The Government alleges that fraud and error in the welfare system cost taxpayers nearly £10bn annually.