DWP update issued ahead of major benefit fraud crackdown and bank account checks

The benefits department has signed two new contracts reportedly worth around £7million to "maintain and modernise" one of its "key" platforms to tackle fraud and error

A new update has been issued ahead of the Department for Work and Pensions (DWP) plan to crack down on benefit fraud.

The benefits department has signed two new contracts reportedly worth around £7million to "maintain and modernise" one of its "key" platforms to tackle fraud and error. According to a report by Public Technology, the deals cover "service maintenance and change" for the DWP's Data Service Platform (DSP) and came into effect this week.

The platform is described by the department as “a critical service used within DWP for the management and exploitation of big data which realises approximately £0.5bn per year in fraud and error based on future benefit spend”.

The larger of the two contracts was awarded to Preston-headquartered big data specialist R+ Analytics with the smaller contract being awarded to Cardiff-based digital transformation firm bedigital. The first contract is reportedly worth around £5.08million, once VAT is included. The second contract is reportedly worth around £2million.

The contract with R+ Analytics will see the firm "support and maintain the applications and develop ongoing changes and modernisation transformation on the platform”. The contract also says the firm will “lead and support delivery activities across DSP and continuous improvement”. This includes “identifying setbacks and shortcomings." This initial contract will last one year but could be extended for a further 12 months. The contract with bedigital, covers the delivery of software development support.

Labour announced its plans to crack down on benefit fraud at its party conference last month. According to the government, the new bill is expected to save the taxpayer £1.6billion over the next five years. Labour said the current level of fraud within the benefits system was costing the taxpayer almost £10billion a year and since the pandemic, a total of £35billion of taxpayers’ money has been lost.

Under the new plans, the Government said the benefits department would be given new powers to "better investigate" suspected fraud and new powers of search and seizure. This would allow the DWP to take "greater control investigations" into criminal gangs. Alongside this, the DWP will also be given powers to recover debts from individuals who can pay money back but have "avoided doing so".

Alongside this, banks and other financial institutions will be required to share bank account data with the DWP. The government reiterated that that the DWP itself would not have access to bank accounts and the data it receives will not be shared with third parties. Finally, the government will be bringing forward a new "Code of Practice" to provide further assurance on the safe use of the powers. The rules within this Code have not been confirmed as of yet and will be consulted on during the passage of the Bill.