New laws will allow officials to request bank account information
The DWP is stepping up its efforts to check Universal Credit claims for errors. The update comes after a raft of new powers have been passed into law, to clamp down on fraud and erroneous payments in the benefits system.
The new measures include bank account checks, where the DWP will order banks to hand over details of accounts linked to benefits which may not be eligible for their payments. These eligibility checks will initially be used to verify the details of Universal Credit claimants, as well as those on Employment and Support Allowance and on Pension Credit.
The legislation states that this could be expanded to other benefits. Liberal Democrat MP Max Wilkinson asked in a written question in Parliament about what steps the DWP is taking “to prevent fraud relating to Universal Credit recipients claiming for properties they no longer occupy”.
DWP minister Sir Stephen Timms issued a response. He said: “Since Autumn Budget 2024, the Government has committed to gross savings of £14.6billion up to the end of 2030/31 from fraud, error and debt activity in Great Britain.” He went on to say what measures are underway to clamp down on these wrongful payments and claw back taxpayer cash.
Mr Timms said they will be achieving savings thanks to “the new powers contained within the Public Authorities (Fraud, Error and Recovery) Act, an extension to continue targeted case reviews to check accuracy of Universal Credit (UC) claims at risk of being incorrect until 2031, and the introduction of periodic redeclaration for Universal Credit claims to ensure claim accuracy, reduce fraud and error, and prevent avoidable debt”.
Targeted case review is a system to check all the details are correct and up to date for a particular claimant, to ensure their award is the right amount. Officials may require a person to send in evidence to prove their situation.
Claimants required to provide evidence
This project was launched in 2022. In a 2023 video explaining the group’s work, DWP top official Neil Couling said: “Customers are asked and supported to provide evidence, including bank statements, to identify any discrepancies.”
Under the newly approved Public Authorities (Fraud, Error and Recovery) Act, officials also now have powers to directly take funds from a person’s bank account, if they owe the DWP cash and are refusing to pay back the amount. A person will be given notice that this is happening, to give them a chance to dispute the matter.
This measure is intended to target people who have left the benefits system and still owe the DWP cash. Previously, the DWP could only reclaim owed funds through PAYE earnings or through deductions from a person’s benefit award.
