The Department for Work and Pensions (DWP) has outlined the two main factors it will be scrutinising when its new powers to inspect bank accounts come into effect.
In an effort to curb fraud, debt and errors in the benefits system, the DWP is set to receive new powers, one of which includes the controversial ability to examine claimants’ bank accounts. This initiative, dubbed “Third Party Data Gathering”, is a data sharing power that requires third parties, such as banks, to supply pertinent information to the DWP.
This could indicate if a claimant fails to meet the eligibility requirements for the benefit they are receiving – for instance, having excessive savings. Under the current Universal Credit regulations, you are ineligible if you possess over £16,000 in cash, savings and investments. The DWP has stated this will be its “main priority”.
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In addition, it will also track if claimants are residing abroad for longer than permitted by the rules. A fresh amendment to the bill – currently making its way to the House of Lords – also compels banks to monitor their customers who are on these benefits, and report to the DWP if an account exceeds the capital limit or is used overseas for more than four weeks, reports the Mirror.
The Department for Work and Pensions (DWP) has moved to reassure the public that its new powers will only allow it to gather “limited and relevant” information to identify wrongful benefit payments, not to pry into the spending habits of claimants or view their bank account details.
Previously, the DWP announced plans to monitor accounts from the UK’s major banks, which include the Bank of Scotland, Barclays, Halifax, HSBC, NatWest, Santander, and TSB, covering 97% of benefit claimant’s bank accounts.
The DWP has clarified that any identified cases will be subject to standard investigation procedures and that penalties will not be automatically applied. In a recent assessment document, the DWP emphasised that decisions would not be made solely on automated data, and caseworkers will consider each claimant’s potential vulnerabilities and use automation responsibly.
The document stated: “[This] measure can potentially include vulnerable people, [and] these areas will be explored further in the equality impact assessment. We are clear, however, that no automatic decisions will be made based on data alone, and DWP staff will follow the usual business processes when looking into any cases, taking account of circumstances and wider vulnerabilities before deciding on a course of action.”
Despite these assurances, campaign groups continue to express concern, arguing that the measures imply means-tested benefit claimants are being treated as “criminal by default”. Silkie Carlo, director for Big Brother Watch, expressed her concerns.
She said: “Such proposals do away with the long-standing democratic principle in Britain that state surveillance should follow suspicion rather than vice versa. It would be dangerous for everyone if the government reverses this presumption of innocence. This level of financial intrusion and monitoring affecting millions of people is highly likely to result in serious mistakes and sets an incredibly dangerous precedent.”
A spokesperson for DWP reassured that these measures are aimed at areas where fraud and error are most prevalent, such as Universal Credit, and clarified. They said: “These changes will not allow DWP direct access to bank accounts, but will require third parties to share data signalling fraud with us so it can be considered further.
“It will also help identify people who have made a genuine mistake with their claim, preventing them from potential debts.” Don’t miss the biggest and breaking stories by signing up to the Echo Daily newsletter here.
