DWP can now take money straight from bank accounts and impose £300 fines under benefit fraud crackdown
The Department for Work and Pensions (DWP) is set to gain sweeping new powers to tackle benefit fraud.The DWP said it is "committed" to tackling fraud and error within the benefits system, which currently costs taxpayers almost £10bn each year.The powers form part of the proposed Fraud, Error and Debt Bill, which is currently being discussed in Parliament.Andrew Western, DWP Minister outlined several new measures being introduced to "prevent fraud entering the system based on the types of cases and trends we have seen".Investigators will be allowed to request details of accounts linked to benefits, directly withdraw funds from bank accounts to recover debts, and apply to courts to seize assets.They will be delivering awareness sessions for Case Managers and Healthcare Professionals, reinforcing action to take when suspicious cases are identified, such as fake documents.The measures target the £90 million lost to fraud and error in the Personal Independence Payment system in 2023/24.Under the new legislation, officials will be able to directly withdraw funds from individuals' bank accounts to settle debts, similar to powers already held by HMRC.Before taking funds, investigators must request at least three months of bank statements to ensure the individual has sufficient resources to pay.In cases where recovery proves challenging, officials will have authority to apply to the courts to confiscate assets owned by the debtor. Georgia Gould, Cabinet under secretary said: "While the bill will provide the powers to seek recovery directly through bank accounts and PAYE earnings, these might not always be the most appropriate or effective recovery route." She added that alternative recovery mechanisms would be pursued when necessary.LATEST DEVELOPMENTS:DWP crackdown hits over 330,000 PIP claimants as benefit payments 'disallowed'DWP slashes benefit payments for HALF A MILLION claimants as sanctions imposed in clampdownThree million Britons claim DWP benefits with no requirement to look for workThe new powers mirror those already held by HMRC, which regularly collects "bulk data" on UK bank accounts.Richard Las, chief investigation officer at HMRC, explained they gather information on "every interest-bearing bank account in the country" as part of an "annual exercise"."It helps us understand whether the right amount of tax has been paid on interest that has been accrued," Las told MPs.HMRC also collects data from third parties, including "merchant acquirers on transactions that businesses might make" and "online platforms in terms of sales".Las emphasised that HMRC has "a huge amount of controls" over how they manage and protect this information.The new powers will include safeguards to protect vulnerable individuals, with Gould confirming they will "only be used once efforts to engage and secure voluntary repayment have been unsuccessful".She 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."Individuals will have several options to challenge decisions, including making representations, applying to vary orders, requesting an internal review, and appealing to a tribunal.Trained, authorised officers will exercise these powers with independent oversight throughout the process.Western also clarified that the bill "will not give DWP access to any bank accounts, nor any information on how claimants spend their money".The measures outlined in the Bill aim to achieve a fair balance between efficient recovery of public funds and fairness.Gould said: "We have consulted widely with a range of fraud and debt stakeholders, including public bodies, academics and non-public sector groups."Banks, charities and civil liberty groups have been engaged to incorporate lessons from existing debt recovery processes.
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The Department for Work and Pensions (DWP) is set to gain sweeping new powers to tackle benefit fraud.
The DWP said it is "committed" to tackling fraud and error within the benefits system, which currently costs taxpayers almost £10bn each year.
The powers form part of the proposed Fraud, Error and Debt Bill, which is currently being discussed in Parliament.
Andrew Western, DWP Minister outlined several new measures being introduced to "prevent fraud entering the system based on the types of cases and trends we have seen".
Investigators will be allowed to request details of accounts linked to benefits, directly withdraw funds from bank accounts to recover debts, and apply to courts to seize assets.
They will be delivering awareness sessions for Case Managers and Healthcare Professionals, reinforcing action to take when suspicious cases are identified, such as fake documents.
The measures target the £90 million lost to fraud and error in the Personal Independence Payment system in 2023/24.
Under the new legislation, officials will be able to directly withdraw funds from individuals' bank accounts to settle debts, similar to powers already held by HMRC.
Before taking funds, investigators must request at least three months of bank statements to ensure the individual has sufficient resources to pay.
In cases where recovery proves challenging, officials will have authority to apply to the courts to confiscate assets owned by the debtor.
Georgia Gould, Cabinet under secretary said: "While the bill will provide the powers to seek recovery directly through bank accounts and PAYE earnings, these might not always be the most appropriate or effective recovery route." She added that alternative recovery mechanisms would be pursued when necessary.
LATEST DEVELOPMENTS:
- DWP crackdown hits over 330,000 PIP claimants as benefit payments 'disallowed'
- DWP slashes benefit payments for HALF A MILLION claimants as sanctions imposed in clampdown
- Three million Britons claim DWP benefits with no requirement to look for work
The new powers mirror those already held by HMRC, which regularly collects "bulk data" on UK bank accounts.
Richard Las, chief investigation officer at HMRC, explained they gather information on "every interest-bearing bank account in the country" as part of an "annual exercise".
"It helps us understand whether the right amount of tax has been paid on interest that has been accrued," Las told MPs.
HMRC also collects data from third parties, including "merchant acquirers on transactions that businesses might make" and "online platforms in terms of sales".
Las emphasised that HMRC has "a huge amount of controls" over how they manage and protect this information.
The new powers will include safeguards to protect vulnerable individuals, with Gould confirming they will "only be used once efforts to engage and secure voluntary repayment have been unsuccessful".
She 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."
Individuals will have several options to challenge decisions, including making representations, applying to vary orders, requesting an internal review, and appealing to a tribunal.
Trained, authorised officers will exercise these powers with independent oversight throughout the process.
Western also clarified that the bill "will not give DWP access to any bank accounts, nor any information on how claimants spend their money".
The measures outlined in the Bill aim to achieve a fair balance between efficient recovery of public funds and fairness.
Gould said: "We have consulted widely with a range of fraud and debt stakeholders, including public bodies, academics and non-public sector groups."
Banks, charities and civil liberty groups have been engaged to incorporate lessons from existing debt recovery processes.
