The Department for Work and Pensions (DWP) is facing criticism over new anti-fraud powers included in the Fraud, Error and Debt Bill, which is currently making its way through Parliament. The Labour government’s proposed legislation aims to tackle benefit fraud, but concerns have been raised about the extent of government monitoring of claimants’ bank accounts.
What Are the New Anti-Fraud Measures?
The Fraud, Error and Debt Bill proposes the following key changes:
- Banks and financial institutions must share limited data to help identify potential benefit fraud.
- The DWP will not have direct access to bank accounts but will receive flagged reports on irregular financial activity.
- Universal Credit claimants with savings over £16,000 could be identified through bank data sharing.
- The Bill is expected to save the government £1.5 billion over five years and £8.6 billion by 2030.
However, critics argue that these powers may be too intrusive and could affect not just benefit claimants, but others associated with them.
Criticism of the DWP’s Anti-Fraud Powers
- Privacy concerns:
- Jasleen Chaggar from Big Brother Watch warned that the monitoring could extend beyond benefit claimants to family members, landlords, and guardians.
- She told MPs: “It is not just benefit claimants who will be targeted; it is everyone’s accounts, including yours and mine.”
- Government response:
- A DWP spokesperson defended the bill, stating that no direct access to bank accounts would be granted and that the limited data sharing was necessary to protect public funds.
- The government claims the new measures will prevent fraudulent benefit claims and recover public money more effectively.
- Chancellor Rachel Reeves’ statement:
- Reeves emphasized that expanding counter-fraud teams and new legal powers would help crack down on fraudsters, ultimately saving £4.3 billion per year.
Government Assurances and Safeguards
The DWP has responded to concerns by outlining safeguards for using these new powers:
- Staff will receive specialized training to handle fraud investigations appropriately.
- Strict oversight mechanisms will be implemented to monitor how the data-sharing system is used.
- No personal bank account access will be given to the DWP.
- No data will be shared with third parties.
The government argues that this bill will strengthen the UK’s welfare system by reducing fraud, error, and waste, aligning with its commitment to safeguarding taxpayers’ money.
The Fraud, Error and Debt Bill aims to prevent fraudulent benefit claims, but it has sparked a privacy debate. Critics warn that the scope of surveillance could unintentionally affect non-claimants, while the DWP insists that strict safeguards will prevent misuse. As the bill moves through Parliament, the government will need to balance anti-fraud efforts with the rights of claimants and the public.
FAQ’s
What is the Fraud, Error and Debt Bill?
The Fraud, Error and Debt Bill is new UK legislation aimed at tackling benefit fraud. It includes measures for banks to share limited financial data to identify claimants who may be receiving benefits fraudulently.
Will the DWP have direct access to my bank account?
No, the DWP will not have direct access to bank accounts. Instead, banks will be required to flag potential fraud cases and share limited financial data.
Who could be affected by these new anti-fraud powers?
While the bill primarily targets benefit claimants, critics warn that others, such as guardians, landlords, or those receiving benefits on behalf of someone else, may also be monitored.
How much money will the government save with these measures?
The government expects to save £1.5 billion over five years and £8.6 billion by 2030 by preventing fraud and recovering funds.
What safeguards are in place to prevent misuse of these powers?
The DWP states that staff will be trained, no direct bank access will be given, and personal data will not be shared with third parties. There will also be oversight mechanisms to ensure proper use of the powers.
