Asked by: James McMurdock (Reform UK - South Basildon and East Thurrock)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential merits of alternative methods to reduce fraud and error in the benefits system that would not involve granting her Department's investigators access to claimants’ bank accounts.
Answered by Andrew Western - Parliamentary Under-Secretary (Department for Work and Pensions)
Fraud and error in the social security system currently costs the taxpayer almost £10 billion a year and, since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to the money. This Government will reduce these levels to stop those looking to defraud the system and reduce the risk of individuals building up large overpayments.
The Eligibility Verification Measure, which will allow banks and financial institutions to share limited information with the DWP to help verify benefit eligibility, has been proposed after extensive consideration and policy development as the most effective way to prevent incorrect payments and crucially, help prevent debts accruing for claimants. As the National Audit Office pointed out, access to data is key to prevention and detection of incorrect payments.
The Eligibility Verification Measure will not give DWP powers to access anyone’s bank accounts, nor any information on how claimants spend their money. Claimants fulfilling their responsibilities by promptly and accurately reporting any changes in their circumstances will not be impacted by these changes.
We will ensure that these powers are proportionate by setting out key safeguards, reporting mechanisms and independent oversight, to give greater confidence to claimants that the powers are being used fairly and effectively.
We will rely on Codes of Practice where they already exist and, where they do not, we will consult on and produce new Codes of Practice to provide further reassurance on the safe use of the powers.
Further details will be set out when the Bill is introduced to Parliament.
Found: Public Law Project – Written Evidence Public Authorities (Fraud, Error and Recovery)
Found: 8 Public Sector Fraud Authority 8 DWP fraud, error and debt recovery powers 9 Oversight, inspection
Found: 8 Public Sector Fraud Authority 8 DWP fraud, error and debt recovery powers 9 Oversight, inspection
Jan. 20 2025
Source Page: Social Security Scotland overpayments for specific benefits: FOI releaseFound: to.Social Security Scotland adopts a preventative approach to overpayments, as detailed in our Counter Fraud
Feb. 24 2025
Source Page: Public Authorities (Fraud, Error and Recovery) Bill 2025: factsheetsFound: Factsheet: DWP’s Eligibility Verification powers in the Public Authorities (Fraud, Error and Recovery
Written Evidence May. 01 2025
Inquiry: Child MaintenanceFound: How effectively does CMS identify and combat underpayment due to fraud or concealed assets and income
Sep. 24 2024
Source Page: New laws to be introduced to crack down on fraudFound: Fraud, Error and Debt Bill brought forward to tackle fraud in social security system New laws to give
Mar. 26 2025
Source Page: Supporting documents for Spring Statement 2025Found: : Recruit over 500 new counter fraud and error staff from April 2025 15 Tax Debt Collection: Invest
Mentions:
1: Andrew Western (Lab - Stretford and Urmston) investigations more effective in both proving and disproving fraud. - Speech Link
2: John Milne (LD - Horsham) In that context, the title of this Bill covers “fraud and error”, not “fraud and genuine human mistake - Speech Link
3: Damien Egan (Lab - Bristol North East) It is also about trying to prevent people from committing fraud. - Speech Link
4: None As with many of the benefits where we see fraud and error, a significant aspect of that fraud is capital - Speech Link