The DWP plans new powers to tackle fraud, including monitoring benefits claimants abroad
London: The Secretary of State for Work and Pensions, Liz Kendall, spoke in Parliament. She reassured everyone that those entitled to benefits have nothing to fear from new fraud powers. These changes aim to tackle the multibillion-pound fraud in the welfare system.
The new Public Authorities (Fraud, Error and Recovery) Bill allows the DWP to recover money directly from fraudsters’ bank accounts. It also lets them request statements from individuals who may have the means to repay welfare debts but refuse to do so. The DWP wants to gather information from more sources, like airlines, to check if people are claiming benefits while abroad.
Kendall explained that the Bill updates the DWP’s information-gathering powers. Currently, they can only request information from a limited number of third parties. This does not include key organizations that could help verify suspected fraud, such as airlines.
She also mentioned a new ‘Eligibility Verification’ check. This will allow banks to share important data with the DWP. This data will help identify incorrect benefit payments, including those made fraudulently.
Kendall emphasized that people should not receive benefits they are not entitled to. The new alerts will simplify the process of identifying potential fraudsters. However, she clarified that the DWP will not have direct access to anyone’s bank accounts.
She assured that any final decisions about benefits will always be made by a human. The State Pension will not be affected by these new measures. There will also be independent oversight of this power, requiring reports to be presented to Parliament.
Additionally, courts could suspend the driving licenses of fraudsters who owe over £1,000 in welfare debts and ignore requests to repay. The Liberal Democrats have expressed concerns, calling the legislation a “Big Brother Bill.”
Kendall defended the Bill, stating it aims to combat the £55 billion lost to fraud each year. This includes various types of fraud, such as benefit fraud by criminal gangs, which amounts to about £7.4 billion annually.
She criticized the Conservatives for not updating the DWP’s powers to fight fraud. The Bill is designed to be tough on those trying to cheat the system while being fair to those who make genuine mistakes.
Independent MP Richard Burgon raised concerns about how these powers will be used. He welcomed efforts to target organized crime but stressed the importance of protecting disabled individuals using the benefits system.
Kendall reassured that those genuinely entitled to benefits have nothing to worry about. She acknowledged the need to address the £7.4 billion lost to benefit fraud.
Labour MP Dame Meg Hillier sought guarantees that people affected by errors would not have money taken from their accounts. Kendall responded that the measures would help prevent such errors from occurring.
The Information Commissioner’s Office has reviewed the proposals and confirmed that the new measures will clearly define what information can be shared.
Liberal Democrat spokesman Steve Darling acknowledged the need to combat fraud but criticized the Bill as excessive. Former shadow chancellor John McDonnell expressed concerns about potential surveillance implications.
The Conservatives generally support the Bill but have raised concerns about possible abuses of power. MPs voted to approve the Bill by a significant majority.
Join our Money Saving Scotland Facebook group for tips and updates on benefits and cost of living. Sign up for our Record Money newsletter for daily stories and alerts.
