The Department for Work and Pensions (DWP) is introducing tougher measures to combat benefit fraud, granting investigators the power to recover funds directly from bank accounts and impose £300 fines on claimants found to have received payments fraudulently. According to GB News, these measures are part of the Fraud, Error and Debt Bill, which is currently being reviewed in Parliament.
New Powers to Tackle Benefit Fraud
The proposed legislation will target cases of fraud and financial errors, which the DWP says cost taxpayers nearly £10 billion annually. Under the new rules, investigators will have the authority to:
- Request details of bank accounts linked to benefit claims
- Withdraw money directly from accounts to recover overpayments
- Apply to courts to seize assets from those who refuse to repay debts
DWP Minister Andrew Western stated that these actions are designed to prevent fraud from entering the system, addressing issues identified in past investigations, such as the £90 million lost to fraud and error in the Personal Independence Payment (PIP) system in 2023/24.
Will the DWP Have Access to Private Bank Accounts?
Despite concerns over privacy, the DWP has clarified that the new bill does not grant automatic access to claimants’ bank accounts or allow the government to monitor personal spending. Instead, investigators will only request account details when there is suspected fraud or an outstanding debt.
Similar powers are already used by HMRC, which collects bulk data on UK bank accounts to track tax payments. Richard Las, HMRC’s chief investigation officer, explained that these measures help determine whether the correct amount of tax has been paid on interest accrued in savings accounts.
Safeguards to Protect Vulnerable Claimants
To ensure fairness, the DWP will only use these powers as a last resort, after attempting to secure repayments voluntarily. Georgia Gould, Cabinet under secretary stressed:
“The only people and companies who will face the powers are those who have the means to repay, but who refuse to do so.”
Claimants will also have the right to challenge decisions through:
- Making representations before money is withdrawn
- Requesting an internal review
- Applying to vary a court order
- Appealing to a tribunal if they believe the action is unjustified
The government has consulted with banks, charities, and civil liberty groups to ensure the new measures are balanced between recovering public funds efficiently and protecting claimants from unfair treatment.
With the bill still under review, these changes could mark a significant shift in how benefit fraud is tackled, giving the DWP stronger enforcement powers while maintaining oversight to prevent misuse.
