The DWP has issued a statement about new bank account check powers (Image: Getty)
The DWP has shared an update about new powers to check benefit claimants’ bank account details. Under new laws, DWP officials will be able to request banking providers to hand over information about accounts linked to certain benefits.
The purpose of this is to check people receiving benefits are eligible for their payments. These powers, known as the Eligibility Verification Measure, will initially be used to check the details of those claiming Universal Credit, Pension Credit and Employment and Support Allowance.
But the legislation states that this could be expanded to other benefits. The new powers are set to be put into use this year. A previous Government document had stated: “DWP will be gradually rolling out the use of the Eligibility Verification Measure in a test and learn environment to allow for sufficient time for business to establish best processes.”
The DWP was asked for an update on how the new checks will work. A DWP spokesperson said: “We have an obligation to protect public funds, with this legislation set to save the taxpayer £2.1billion over the next five years, part of wider plans that will save £14.6billion.
“The legislation includes an Eligibility Verification Measure which will require banks to share limited data on claimants who may wrongly be receiving benefits. It does not involve access to benefit claimants’ bank accounts.”
The DWP said there are “no current plans” to expand the use of the powers to other benefits. Officials said the measures will involve banks and financial institutions looking through their own data to identify accounts that receive one of the three benefits, to identify anyone who “may not be meeting specified eligibility rules”.
The DWP also confirmed that “no personal information will be shared by DWP” to help the banks in identifying accounts that may not be eligible for their benefits. The eligibility checks are part of a wider package of new powers brought in under new legislation, in efforts to tackle fraud and wrongful payments in the benefits system and more widely in other public authorities.
Directly deducting funds from people’s bank accounts
Among the powers is a direct deduction order, which will allow investigators to directly take an amount from a person’s bank account if they owe the DWP money, and are refusing to pay up. The person will be given notice before investigators take the cash.
These powers are intended to help recover funds from people who have left the benefits system but still owe the DWP cash. Previously, the DWP could only get back owed amounts through deductions from a person’s benefits or through their PAYE earnings.
To clamp down on fraud, the new legislation also includes powers for investigators to raid properties and seize items, in efforts to combat organised criminal gangs. A new information notice power also allows officials a wider remit to request people to hand over information, in cases where they are investigating fraud.
Under previous laws, investigators could only request information from people on a specific restricted list. But now they can contact any third party related to a suspect, to order them to hand over the information they need.
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