DWP bank account crackdown could see thousands prosecuted

New rules could see bank accounts being monitored in a DWP crackdown against fraud.

The Department for Work and Pensions has been exploring legislative measures to help reduce levels of fraud, error and debt in the benefits system. But now, new rules could mean thousands will be prosecuted and even sent to prison.




New powers currently going through Parliament would mean the UK’s top 15 banks will continuously monitor the accounts of people on benefits and inform the DWP if someone is suspected of cheating the system, BirminghamLive reports. It aims to target those claiming more benefits than needed as well as undeclared income.

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The new system will likely be rolled out in 2025, however some banks may not be on board for a further five years. The DWP estimates it will cost around £30 million a year for them to investigate potential fraud identified by the new system but will save taxpayers £500 million a year through reduced fraud and error.

Officials have also estimated that over the first 10 years, the new powers will result in an extra 74,000 prosecutions and 2,500 custodial sentences. During a debate on the new Data Protection and Digital Information Bill, which has now passed its third reading in the House of Commons, concerns were raised by Sir Stephen Timms, Labour MP for East Ham and chair of the Work and Pensions Committee.

He was concerned that the measures would also be used to look into the bank accounts of people claiming the State Pension. However, Sir John Whittingdale, Conservative MP for Maldon and Minister of State in the Department for Culture, Media and Sport and the Department for Science, Innovation and Technology, said it was “narrowly focused.”

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