The DWP has provided an update after questions were raised about how it shares employment data with local authorities. Policy advocates recently spoke to the Work and Pensions Committee about how the DWP benefits system could be reformed, to ensure people get the support they are entitled to.
Fabian Chessell, central government lead at Policy in Practice, said there needs to be more data sharing to improve “employment support” for claimants. He criticised the Government’s devolution bill, introduced in July 2025, for being “silent” on data sharing.
The new laws would grant new powers to mayors and would allow for the creation of Strategic Authorities in each area of England, which will govern areas such as housing and skills and employment support. The bill is currently going through the House of Lords.
Mr Chessell said of the devolution plans: “If we’re giving them power, we need to give them data.” He also pointed to existing legislation that help improve data sharing.
Section 72 of the Welfare and Pensions Reform Act 1999 provides for “exchange of information” between Government departments and employers relating to the a person claiming working-age benefits. Mr Chessell said this legislation “creates the gateways for sharing employment data with councils today from DWP and HMRC” and could be amended to allow more data sharing.
He said: “Let’s do the simple thing. There’s a lot of complex questions in front of us, this isn’t one of those.” The DWP was asked for a response.
A spokesperson said: “Millions of people rely on our welfare system every year and it is vital that it can be accessed by all who need it. We already share income and earnings data with local authorities to help ensure people receive the Housing Benefit and council tax support they’re entitled to.
“We’re now exploring ways to expand this data sharing with Local Authorities and Mayoral Strategic Authorities, so they can better connect people with employment support.” The DWP said it also regularly promotes and raises awareness of benefits available to the public such as with its Help for Households campaign.