DWP Universal Credit bank account checks under John Healey, Digi Mart USA News (United Kingdom): John Healey has abandoned the Department for Work and Pensions (DWP) benefits and welfare fraud crackdown plan. The Labour Party Chancellor will not allow the DWP to examine the savings of those claiming Universal Credit.
Rachel Reeves, who Mr Healey replaced in No 11 Downing Street under Andy Burnham’s government, announced in last year’s spring statement that the government would “verify” claimants’ bank accounts to ensure their savings were not above the limit. She claimed the policy would save £200m by 2030 by reducing benefit fraud, which costs the Treasury almost £10bn a year.
Mr Healey is now abandoning that plan. The DWP has instead asked banks to conduct checks on claimants’ bank accounts after they have received Universal Credit and report the findings to the Government.
Helen Whately, the Conservatives’ shadow work and pensions secretary, said: “There will be no savings in this Parliament and they don’t even want to make savings over the next decade.” The Conservative Party MP added: “Millions of people are trapped on benefits and hardworking taxpayers are being forced to foot an ever-growing bill. We desperately need a Government with the backbone to tackle our broken welfare system.”
To claim Universal Credit you must usually have no more than £16,000 in money, savings and investments as a single claimant or if you are living with a partner. If you have below £6,000, it will not affect your award.
If you moved from tax credits to Universal Credit, different money, savings and investments eligibility rules apply if you received a Migration Notice letter.
If you have money, savings and investments between £6,000 and £16,000, your Universal Credit payments will be reduced. Payments are reduced by £4.35 for every £250 you have between £6,000 and £16,000, with another £4.35 taken off for any remaining amount that is not a complete £250.
A DWP spokesman said: “This Government is determined to crack down on fraud and error and protect taxpayers’ money. The previous Open Banking proposal relied on claimant consent and could not be used in every Universal Credit claim.”
“We are instead introducing the Eligibility Verification Measure (EVM), which will require banks and financial institutions to provide information where accounts meet specified criteria, giving DWP a more consistent way to identify incorrect payments and tackle fraud and error.”
“This is just one part of a comprehensive programme to tackle fraud, error and debt, and EVM is expected to save £1.2bn by 2030-31.”
