DWP now has new powers to take funds straight from bank accounts.
The DWP has new powers to directly take funds from people’s bank accounts (Image: Getty)
Fresh DWP anti-fraud legislation has become law this week, introducing measures that enable officials to withdraw money directly from individuals’ bank accounts. Authorities will also demand banking information from millions of benefit recipients to verify their entitlement to payments.
The Public Authorities (Fraud, Error, and Recovery) Act gained Royal assent in the House of Lords yesterday. The DWP has confirmed it will deploy these direct withdrawal powers against “benefit cheats, fraudsters and debtors who can afford to repay but refuse”. The fresh legislation even grants authority to revoke someone’s driving licence should the DWP attempt to recover money but prove unsuccessful, reports The Mirror
The DWP is getting major new powers to check people’s bank accounts (Image: Getty)
These direct account access powers are designed for situations where individuals owe money but have exited the benefits system, while declining to clear their debt despite numerous demands.
Previously, the DWP could only recover funds through benefit deductions or PAYE salary adjustments.
Minister for Transformation Andrew Western declared: “It is right that as fraud against the public sector evolves, the Government has a robust and resolute response.
“The powers granted through the bill will allow us to better identify, prevent and deter fraud and error, and enable the better recovery of debt owed to the taxpayer. A benefits system people can trust is essential for claimants and taxpayers alike – through this bill that’s exactly what we’ll deliver.”
The DWP is getting major new anti-fraud powers (Image: Getty)
In instances where the Department for Work and Pensions (DWP) intends to directly extract funds from an individual’s bank account, they will provide prior notice. Investigators are also required to request a minimum of three months’ worth of bank statements to ensure sufficient funds are available.
If attempts to recover funds have been unsuccessful and there remains £1,000 or more outstanding, officials have the authority to suspend the individual’s driving licence.
The bill also introduces an eligibility verification measure for three benefits. This involves officials liaising with banking providers to obtain details of accounts associated with certain benefits, in order to confirm the claimant’s entitlement to the funds.
Initially, this will be applied to those claiming Universal Credit, Pension Credit, and Employment and Support Allowance. The legislation indicates that this could potentially be extended to other benefits.
An independent overseer will be appointed to monitor the application of these powers, ensuring their effectiveness and appropriateness.
The bill also grants additional powers to officials to request information during investigations into suspected benefit fraud. Previously, the DWP could only request information from individuals on a restricted list.
Under the broadened powers, they can request details from any third party believed to be connected with the suspect.
