To strengthen its campaign against benefit fraud, the UK government announced on Monday 13 May ambitious changes, promising to extend the investigative powers of the Department for Work and Pensions (DWP).
DWP to be Given Police Powers to Arrest, Search and Seize Property
A key change in authority, similar to that of law enforcement authorities, is central to the proposed reforms. Under the new law, DWP investigators would be empowered to search private property, seize goods and even make arrests where they deem it necessary.
Such measures are envisaged to deter serious crime and safeguard the integrity of the welfare system and the interests of taxpayers.
These changes will be introduced in the next parliamentary session through a new Fraud Bill. As noted in the government’s policy paper, ‘Fighting Fraud in the Welfare System’, the fight against benefit fraud will mirror the approach taken to non-compliance with tax obligations.
Principal Features of the Proposed Legislation
- Mandatory Disclosure: Those with relevant information about people receiving state benefits will be required to disclose it, promoting transparency and accountability.
- Enhanced Investigative Powers: The DWP’s investigative officers will be empowered to make arrests and execute search and seizure warrants. This alignment with serious crime agencies such as HMRC and the Gangmasters and Labour Abuse Authority is intended to streamline operations and increase efficiency.
- End-to-End Management: The proposed law would see end-to-end management of serious criminal cases by the DWP, giving it the means to conduct field operations and obtain evidence, thereby speeding up the court process.
Behind the legal changes are two main objectives: to reduce annual fraud losses, estimated at £1.6 billion by 2030, and to control the rising costs of social care programmes.
Universal Credit spending is expected to reach £85 billion a year by 2030, so these reforms are seen as essential to ensure fiscal prudence and maintain the viability of the welfare system.
Claimants’ Bank Accounts will also be Checked
Probably one of the most controversial measures to be introduced is to allow DWP investigators to look at claimants’ bank accounts. Plans suggest this measure will be called ‘Third Party Data Collection’ and the whole purpose is to examine whether claimants are misleading the Benefits Office about their savings or income, thereby making them ineligible.
According to the existing Universal Credit rules, you will not be eligible if you have more than £16,000 in cash, savings and investments. This, the DWP says, will be its “main priority”. In parallel, it will also check whether claimants are staying abroad for longer than the rules allow.
Another change to the Bill which is currently being debated in the House of Lords also obliges banks to monitor their clients in receipt of these benefits and to notify the DWP if an account exceeds the maximum capital limit or is used abroad for more than four weeks.
However, none of the proposed reforms are stand-alone, but rather form part of a wider programme to reorganise the social protection system.
The recent disability benefit reform proposals, including the potential replacement of cash payments with voucher or catalogue schemes, emphasise the government’s commitment to ensuring the judicious allocation of resources and improving the efficiency of social protection programmes.
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