DWP powers to enter bank account and take cash 'will not extend to one benefit'

The Department for Work and Pensions (DWP) head has disclosed that new measures allowing welfare fraud investigators to seize funds directly from people's wages and bank accounts will not include state pensions. DWP's new ability to take money straight from paychecks is part of a broader initiative to combat benefit fraud, but Work and Pensions Secretary Liz Kendall has clarified that targeting state pensions wouldn't be 'proportionate' in this crackdown.

These actions form part of the upcoming Fraud, Error and Debt Bill, which was unveiled by the Prime Minister during the Labour Party conference in September, aiming at saving £1.6 billion over the coming five years by "modernising" DWP operations.

Under current regulations, DWP investigators must obtain a court order before they can make deductions from an individual’s earnings or banking assets. However, writing for the Sunday Telegraph, Ms Kendall criticised how outdated these powers were, noting it was "absurd" they hadn’t been updated in the past two decades.

With UK taxpayers losing a staggering £7.3billion to benefit fraud last year alone, the proposed Government bill seeks to significantly reduce this figure by equipping DWP with enhanced authority to investigate any suspected fraudulent claims and retrieve the ill-gotten money.

The MP outlined her views on the current state of welfare fraud investigations: "My team are still, in 2024, sending letters to gather evidence for those suspected of welfare fraud, slowing them down to a snail's pace when they could be shutting down serious fraud cases.", reports Lancs Live.

Detailing proposed legislative changes, she said, "Our bill will give them similar powers as HMRC to investigate fraudsters – it's time we give them the tools they need for the fight."

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Besides allowing officials to deduct overclaimed benefits directly from wages, the Bill reportedly will empower investigators to compel personal data from all private sectors. However, this will exclude the state pension, which Ms Kendall described as not being "proportionate".

Controversial aspects of the bill include heightened powers to verify identities and prevent fraud. Ms Kendall asserted that these would enable authorities to effectively "stop serious fraud in its tracks by making sure people really are who they say they are".

Despite concerns raised by Big Brother Watch, which labelled the measures "Orwellian" and a dangerous extension of state influence, the MP countered the critique, labelling the idea that the government will pry into bank accounts as "nonsense" and confirmed that there would be human oversight in place.

The Government argues that fraud and error in the welfare system cost the taxpayer a substantial £10 billion a year. As a result, ahead of this month's Budget, the Chancellor is reportedly considering tax hikes and spending reductions totalling £40 billion to prevent a resurgence of austerity measures.

Earlier proposals by the preceding government made it through the House of Commons but failed to clear the House of Lords before the General Election was called. Expected average annual savings from the Government's recent initiatives are around £320 million.

Speaking to The Telegraph, Silkie Carlo, director of Big Brother Watch, expressed concern: "This blank cheque to force private companies to snoop and report on the country's poorest citizens to the state is intrusive, excessive and will create a culture of fear among millions of people claiming benefits."