DWP bank account checks for benefit claimants, Digi Mart USA News: The Department for Work and Pensions (DWP) is set to use new powers to access the bank accounts of benefit claimants during November and December, according to a Birmingham Live report. Under the powers, government officials can directly access bank accounts to check details and make direct withdrawals, and banks will be required to comply with requests.
The powers form part of a crackdown on benefit fraud and debt and can be used against claimants of Universal Credit, Pension Credit and Employment and Support Allowance (ESA). The department will look for details such as how much someone holds in savings or other income that has not been declared.
Banks will be instructed to look for claimants who may have hidden or undeclared savings, which the report describes as a major cause of benefit fraud.
The DWP also wants to identify claimants who have remained abroad for longer than the rules allow while continuing to receive benefits. The government will also have new powers to suspend driving licences of benefit claimants who are not engaging or repaying what they owe.
Minister for Innovation, Fraud and Debt Lilian Greenwood said the powers would help crack down on people who deliberately abuse the system while ensuring people receive the right support. She said banks would simply be asked to identify whether somebody may no longer meet the rules for their benefits, allowing further investigation where necessary.
Labour says the powers are needed to stop large sums being wasted each year, with the government expecting £1.2 billion in savings by 2030/31. Concerns have been raised about privacy and state overreach.
