The UK government is pressing ahead with a new Department for Work and Pensions (DWP) Fraud Bill, granting powers to access bank account data of people receiving benefits, in a move described by critics as an overreach.
The legislation will allow DWP officials to request financial information directly from banks, without prior suspicion of wrongdoing.
Concerns have been raised by MPs and campaigners over the scale and scope of the proposed powers. They argue that such measures could undermine long-standing legal principles and disproportionately impact vulnerable groups, including disabled benefit recipients.
Government Defends Early Detection Strategy to Reduce Incorrect Payments
The DWP states the aim of the bill is to strengthen its ability to detect and prevent fraud, especially in cases of organised crime and online fraud. According to Minister Andrew Western, the new powers would allow the department to work more efficiently with banks, helping to identify irregular payments earlier, even before formal suspicion arises.
Western clarified that the legislation “is not a power to be used to respond to suspected fraud” but a preventive tool designed to catch errors or misuse of funds before they escalate.
He also insisted the process would include “robust safeguards, reporting mechanisms and independent oversight”, intended to balance fraud prevention with respect for personal privacy.
According to the DWP, no financial data would be transferred automatically or en masse. Instead, banks would be required to flag accounts meeting certain criteria, with the DWP then authorised to investigate further.
Existing powers under the Social Security Administration Act already allow limited access to financial information, but the new bill significantly expands the scope and reduces the threshold for action.
Warnings Over Wrongful Scrutiny and Legal Implications
Despite assurances, opposition MPs and campaigners have voiced strong objections. Former Conservative cabinet minister David Davis warned that using algorithms to flag suspicious activity could wrongly implicate thousands.
“If the banks use algorithms they’ll have an error rate of at least 1%,” he said, “That means there’ll be 10,000 innocent people or more dragged through the system.”
Labour MP Neil Duncan-Jordan echoed those concerns, stating the poorest in society would bear the brunt. He emphasised that the bill is “compelling banks to trawl through financial information even where there is no suspicion of wrongdoing”, undermining the presumption of innocence, a foundational principle in British law.
Another MP, Richard Burgon, said the policy formed part of a broader move toward a “hostile environment” for benefit claimants, particularly those with disabilities. He described the measure as emblematic of “treating claimants as suspects automatically”.
