The Department for Work and Pensions (DWP) is primed to scrutinise three key benefits, including Universal Credit, as part of heightened bank account checks. This tightening of regulations comes under the new plans outlined by the Labour government aimed at retrieving £8.6 billion over a five-year span from benefit fraud via the Public Authorities (Fraud, Error and Recovery) Bill.
The legislation notes: "In the social security system, overpayments from fraud and error currently cost 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."
Additionally, it points out that: "Outside the social security and tax system. at least £3 billion is being lost to fraud and error per year."
The DWP is set to first address the issue in benefits where incorrect payments are notably high, pinpointing Universal Credit, Pension Credit and Employment and Support Allowance, reports Birmingham Live.
Furthermore, the DWP has declared: "Other benefits could be added with the approval of Parliament in the future through affirmative regulations. The State Pension is explicitly excluded from the power and cannot be added by regulations."
The DWP also mentioned: "When information obtained by DWP in response to an Eligibility Verification subsequently helps identify that a claimant is ineligible for a specified benefit, DWP may also use the information to verify the claimant's eligibility for other benefits."
They elaborated: "For example, where a claimant is eligible for Pension Credit they may also be automatically eligible for Housing Benefit. Should the information lead DWP to ascertain that a claimant does not qualify for Pension Credit, then the Department will review their entitlement to Housing Benefit as well."
The DWP added: "A human will always be involved in any decision which may affect benefit awards or eligibility. The powers will not give DWP access to any claimants' bank accounts, nor any information on how claimants spend their money."
Under the new legislation, banks and other financial services must compare benefit claimants' accounts against "specific eligibility indicators". These criteria are the benchmarks applicants must meet to be entitled to benefits.
Get all the latest money stories sent to your phone
Get all the latest money stories from Yorkshire Live straight to your mobile via WhatsApp by clicking here.
Whether it's the latest DWP announcements, pensions changes or the latest offers and discounts, you'll get it all.
If you don’t like our community, you can leave any time. We also treat members to special offers, promotions, and adverts from us and our partners. Read our privacy notice here.
