Investigators will also be able to directly take funds from people’s bank accounts
The DWP has issued fresh details regarding new powers to check the bank account details of benefit recipients. Under newly approved legislation, DWP officials will demand financial institutions to provide data about accounts connected to specific benefits.
The aim is to verify that those receiving their payments are genuinely entitled to them. These new powers, called the Eligibility Verification Measure in the new laws, will initially be used to check the details of those on Universal Credit, Pension Credit and Employment and Support Allowance. However, the laws indicate this scope could broaden to include more benefits. These new powers will be used from this year.
A previous Government paper had explained: “DWP will be gradually rolling out the use of the Eligibility Verification Measure in a test and learn environment to allow for sufficient time for business to establish best processes.” The DWP was asked for an update on the rollout of the eligibility checks.
Now a DWP spokesperson has said: “We have an obligation to protect public funds, with this legislation set to save the taxpayer £2.1billion over the next five years, part of wider plans that will save £14.6billion. The legislation includes an Eligibility Verification Measure which will require banks to share limited data on claimants who may wrongly be receiving benefits.
“It does not involve access to benefit claimants’ bank accounts.” The DWP stated there are “no current plans” to extend the use of these powers to other benefits.
‘Personal information’
Officials explained the measures will require banks and financial institutions to look over their own data to pinpoint accounts receiving one of the three benefits, identifying anyone who “may not be meeting specified eligibility rules”. The DWP also confirmed that “no personal information will be shared by DWP” to help the banks in spotting claimants that may not qualify for their benefits.
The eligibility checks form part of a broader set of new powers introduced under fresh legislation. The package of measures is aimed at combating fraud and incorrect payments within the benefits system and across other public bodies.
Among these powers is a direct deduction order, enabling investigators to take money directly from someone’s bank account if they owe the DWP funds and are refusing to settle their debt. The person will receive advance warning before investigators seize the money.
Seizing items
These powers are designed to help recover money from people who have exited the benefits system but still owe the DWP cash. Previously, the DWP could only reclaim outstanding amounts through benefit deductions or via PAYE earnings.
In a bid to curb organised fraud, the new legislation also empowers investigators to conduct property searches and confiscate items, to tackle criminal gangs. The laws also introduce a new information notice power, granting officials broader authority to demand people provide information in instances where fraud is being investigated.
Under previous rules, investigators could only solicit information from people on a specific restricted list. However, they can now approach any third party associated with a suspect, compelling them to provide the necessary information.
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