DWP Can Seize Money from Bank Accounts Even If You’re Not on Benefits

The DWP is gaining new powers to recover funds from bank accounts, even for those not on benefits, aiming to tackle fraud effectively.

DWP Can Seize Money from Bank Accounts Even If You’re Not on Benefits
DWP Can Seize Money from Bank Accounts Even If You’re Not on Benefits

London: So, the Department for Work and Pensions is about to get some pretty hefty powers. They’re looking to change the law in 2025, and it’s a big deal.

They’re calling it the Public Authorities (Fraud, Error & Recovery) Bill. The goal? To save a whopping £1.5 billion by cracking down on benefit fraud.

With this new law, the DWP can actually get search warrants. That means they can go into people’s homes and check for things like computers and smartphones if they suspect fraud.

But it gets even wilder. They’ll also have the ability to take money directly from bank accounts, even if you’re not claiming benefits at all. This could hit folks involved with Personal Independence Payments or Universal Credit.

When the government announced this, they mentioned that DWP’s fraud investigators will be able to work alongside the police. They’ll be able to search places and grab evidence against those trying to cheat the system.

Now, the DWP insists they won’t just waltz into your bank account. They want to work with banks to find out who’s not eligible for benefits and track down the fraudsters.

Employment minister Alison McGovern explained that they need these powers to gather evidence themselves, rather than relying solely on the police.

She also pointed out that if someone isn’t in the benefits system or PAYE, they need a way to get that money back. The new powers are all about making sure they can reclaim funds.

And if all else fails, they might even be able to disqualify someone from driving as a last resort. It’s a serious move to ensure they get their money back from those who owe it.

McGovern made it clear that these powers will be used in extreme cases to tackle benefit cheats. It’s a big shift in how the DWP operates.

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