Fraud investigators will check the bank details of millions of benefit claimants
New DWP anti-fraud powers have been made law including measures to directly take funds from people’s bank accounts this afternoon. Officials will also request bank details of millions of benefit claimants to check they are eligible to receive their payments.
The Public Authorities (Fraud, Error, and Recovery) Act received royal assent in the House of Lords this afternoon. The DWP confirmed it will use the direct deduction powers to take funds from “benefit cheats, fraudsters and debtors who can afford to repay but refuse”.
The new laws even provide powers to suspend a person’s driving licence if the DWP has tried to retrieve funds from them but has been unable to do so. The powers to directly take cash from a bank account are intended for cases where a person owes funds but has left the benefits system, and they are refusing to settle the debt despite repeated requests.
The DWP could previously only deduct funds from a person’s benefit award or through PAYE earnings. Minister for Transformation, Andrew Western, said: “It is right that as fraud against the public sector evolves, the Government has a robust and resolute response.
“The powers granted through the bill will allow us to better identify, prevent and deter fraud and error, and enable the better recovery of debt owed to the taxpayer. A benefits system people can trust is essential for claimants and taxpayers alike – through this bill that’s exactly what we’ll deliver.”
In cases where the DWP wants to directly take funds from a person’s bank account, they will give them notice that they intend to do so. Investigators will also have to request at least three months of bank statements for the person’s account, to make sure they have the funds available.
If investigators have tried to recover funds but there is still £1,000 or more that needs to be paid, officials can suspend a person’s driving licence.
Eligibility bank checks for three benefits
The bill also includes an eligibility verification measure, which will involve officials contacting bank providers to get them to hand over details of accounts linked to certain benefits. The information will be used to check the person is entitled to receive their cash.
This will initially be used to check the details of those claiming Universal Credit, Pension Credit, and Employment and Support Allowance. The legislation states that this could be expanded to other benefits.
An independent overseer will be appointed to monitor the use of the powers. They will check that the measures are effective and that they are only used when appropriate.
More powers to request information in fraud cases
Other measures in the bill include more powers for officials to request information when looking into a case of suspected benefit fraud. The DWP could previously only ask for information from people on a restricted list.
Under the expanded powers, they can request details from any third party thought to be connected with the suspect.
