DWP Set to Target a Specific Benefit with New Bank Account Checks Following Labour Changes

1. DWP may have access to bank accounts by reason to distinguish scammers and crack down on fraud. Under the new Labour Party government, financial institutions will be asked to share data that can help in identifying and halting fraudulent activities

Sir Keir Starmer claims that cutting off benefit fraud help the government to 'maintain support for the welfare state’, reports BirminghamLive. Banks and other financial institutions will be required to share data that could help identify benefit fraud by Labour's new Bill.

DWP Introduces New Measures to Protect Vulnerable Claimants and Prevent Fraud

The government claims that in order to protect vulnerable claimants, the new bill will involve some serious measures and also create safeguards to make sure the DWP does not misuse the new powers.

The DWP stated: “Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms to monitor these new powers. DWP will not have access to people’s bank accounts and will not share their personal information with third parties.”

It further stated that the legislation keeps the government's promise to protect taxpayers' money and shows their commitment to preventing fraud, errors, and waste in public services, including social security.

Universal Credit Fraud on the Rise

Universal Credit is the most prevalent area of benefit fraud, representing two-thirds of all cases. Big Brother Watch's director, Silkie Carlo, stated: “Everyone wants fraud to be dealt with, and the government already has strong powers to investigate the bank statements of suspects.

“But to force banks to constantly spy on benefit recipients without suspicion means that not only millions of disabled people, pensioners, and carers will be actively spied on, but the whole population’s bank accounts are likely to be monitored for no good reason.

She went on to say: “A financial snooper’s charter targeted to automate suspicion of our country’s poorest is intrusive, unjustified, and risks Horizon-style injustice on a mass scale.”

Crossbench peer Beeban Kidron declared: “If the government introduces spyware as previously proposed, I will oppose it with the ferocity that Labour colleagues in opposition did.”