The Department for Work and Pensions (DWP) will be given more powers to check personal financial data in an effort to reduce benefit fraud.
The plan has been announced as one of a number of amendments to the Data Protection and Digital Information Bill.
It would enable DWP to carry out regular fraud checks on the bank accounts held by benefit claimants to spot increases in their savings that push them over the benefit eligibility threshold.
The department said this will make it possible to identify fraud and take action more quickly, but that – to address privacy concerns – only a minimum amount of data will be accessed and only in instances that show a potential risk of fraud and error.
Message to fraudsters
Secretary of State for Work and Pensions Mel Stride said: “These new powers send a very clear message to benefit fraudsters – we won’t stand for it. These people are taking the taxpayer for a ride and it is right that we do all we can to bring them to justice.
“These powers will be used proportionately, ensuring claimants’ data is safely protected while rooting out fraudsters at the earliest possible opportunity.”
The House of Commons will consider the proposed amendments to the bill next week.