Image source: Lauren Hurley, No 10 Downing Street
The Department for Work and Pensions (DWP) will not be given access to people’s bank accounts in its efforts to detect and fraud and error in the benefits system, a Government minister has said.
Secretary of State for Work and Pensions Liz Kendall said that banks will be required to examine their own datasets but only share “very minimal” information with the department.
She clarified the plan this week in a statement to Parliament on the Fraud, Error and Debt Bill.
This follows earlier complaints from privacy campaigners over the plans – first floated by the previous Government as part of its Data Protection and Digital Information Bill – for the DWP to have access to people’s bank data in detecting fraud.
The DWP’s announcement of the new bill, made last month, said it would “require banks and financial institutions to share data that may show indications of potential benefits overpayments”.
Identifying discrepancies
In her statement to Parliament, Kendall said one of the features of the bill will be: “Through our eligibility verification measure, to require banks and financial institutions to examine their own datasets to highlight where someone may not be eligible for the benefits they are being paid. This will help DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity.
“Banks will only share very minimal information, and this will only be used by DWP to support further inquiry, if needed, into a potential overpayment.”
She emphasised the that the new power is aimed at verifying the eligibility for benefits and “will not give DWP access to any bank accounts, nor any information on how claimants spend their money”.
Other measures in the bill will include the DWP: having powers of search and seizure in investigations in criminal gangs; recovering debts from people who can pay money back but have avoided doing so; and changes in the penalties system so no-one found to have committed fraud avoids punishment.
Kendall added: “This legislation will support the delivery of the Government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the Government’s commitment that it will not tolerate fraud or waste anywhere in public services, including the social security system.”
