DWP to take money straight from bank accounts and payslips in new benefit crackdown

Under existent rules, investigators request a tribunal bid earlier they tin deduct wealth from someone’s wages oregon slope accounts - but caller measures are expected to beryllium included successful a caller Bill

Department for Work and Pensions (DWP) payment fraud investigators volition beryllium fixed caller powers to instrumentality wealth straight from slope accounts oregon wage slips, it has been reported.

Under existent rules, investigators request a tribunal bid earlier they tin deduct wealth from someone’s wages oregon slope accounts - but caller measures that volition marque it easier for them to recoup wealth from benefit fraudsters are expected to beryllium included successful the caller Fraud, Error and Debt Bill, according to the Sunday Telegraph.

Investigators volition besides beryllium fixed the quality to entree accusation astir suspected fraudsters from each backstage companies, not conscionable banks, utilities and employers - but the caller rules volition not widen to the authorities pension. The DWP is looking to prevention £1.6billion implicit the adjacent 5 years arsenic portion of a caller crackdown connected payment cheats.

Writing successful the Sunday Telegraph, Work and Pensions Secretary Liz Kendall said it was “absurd” that investigators’ powers had not been updated successful the past 20 years. She said the enhanced information-gathering powers would let the authorities to “stop superior fraud successful its tracks by making definite radical truly are who they accidental they are”.

She said: “My squad are still, successful 2024, sending letters to stitchery grounds for those suspected of payment fraud, slowing them down to a snail’s gait erstwhile they could beryllium shutting down superior fraud cases. Our measure volition springiness them akin powers arsenic HMRC to analyse fraudsters – it’s clip we springiness them the tools they request for the fight.”

However, the plans person been slammed by campaigners, with Big Brother Watch describing them arsenic "Orwellian" and a menace to privacy. Silkie Carlo, manager of Big Brother Watch, said: “This blank cheque to unit backstage companies to snoop and study connected the country’s poorest citizens to the authorities is intrusive, excessive and volition make a civilization of fearfulness among millions of radical claiming benefits.

Ms Kendall dismissed claims that the Government would beryllium "snooping" connected slope accounts arsenic "nonsense" and insisted determination would beryllium quality oversight of automated alerts flagging imaginable fraud. The Government antecedently said the DWP itself volition not person entree to slope accounts and the information it receives volition not beryllium shared with 3rd parties.

The Government claims fraud and mistake successful the payment strategy costs the payer £10billion a year. The caller Fraud, Error and Debt Bill a continuation of plans drawn up by the erstwhile Tory Government. The caller Bill focuses astir giving the DWP greater powers to entree fiscal information that whitethorn assistance place payment fraud.

This year, a transgression pack was jailed for much than 25 years aft falsely claiming much than £53million successful Universal Credit. This was the largest payment fraud lawsuit seen successful England and Wales. The Government says that quality of fraud has besides go much sophisticated, meaning without caller ineligible powers, DWP cannot decently support gait with the changing quality of fraud to tackle it robustly enough.