New DWP fraud update on plans to monitor bank accounts and spending of people claiming benefits
dailyrecord.co.ukThe UK Government has announced it has saved the taxpayer over £1.3 billion from fraud and error in the benefits system over the past year, as it set out the latest version of its Fraud Plan.
It follows a crackdown on thousands of people fraudulently claiming Universal Credit, including successful efforts by Department for Work and Pensions (DWP) investigators to smash Britain’s biggest-ever benefit fraud case - securing convictions for a £53.9 million Universal Credit scam.DWP is also planning to save £9bn by 2028 in a sustained crackdown on benefit cheats.
This includes hiring additional staff to check millions of Universal Credit claims for accuracy, modernising information-gathering powers, and introducing a new civil penalty to punish fraudsters.DWP has also clarified how it will use new third party powers, such as banks, to identify claims that signal potential fraud and error.This measure is expected to save the taxpayer £600 million over five years, on top of the £9 billion projected to be saved from the wider plan.However, the DWP said it was important for claimants to be aware the powers within the Data Protection and Digital Information Bill only require third parties such as banks to provide relevant information to the DWP that may signal where claimants do not meet the eligibility criteria for the benefit they are receiving.DWP clarified these measures will require third parties to “provide only limited, relevant information that may signal whether benefits are being improperly paid” and “does not give DWP access to anyone’s bank account or see how claimants are spending their money”.The update follows on from the Prime Minister setting out sweeping reforms of the welfare system last month, including a new
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