DWP confirms new 'Eligibility Verification' bank measure to tackle benefit fraud

dailyrecord.co.uk:

The Department for Work and Pensions (DWP) has confirmed new measures to tackle fraud in the welfare system will not give investigators access to claimant bank accounts or see how they spend any benefit payments.However, Work and Pensions Secretary Liz Kendall announced on Tuesday the new ‘Eligibility Verification’ measure will “require banks and financial institutions to examine their own data sets to highlight where someone may not be eligible for the benefits they are being paid” adding this will “help DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity”.The DWP boss made it clear the ‘Fraud, Error and Debt Bill’ will ensure banks “only share very minimal information” which will “only be used by DWP to support further inquiry, if needed, into a potential overpayment”.The DWP pays benefits to around 22.7 million people across Great Britain.

Fraud and error in the welfare system currently costs the taxpayer almost £10 billion each year and since the pandemic a total of £35bn has been incorrectly paid to those not entitled to the money, however, it’s important to be aware this also includes criminal gangs, not just benefit claimants.Ms Kendall explained the measures in this Bill are expected to save up to £1.6bn over the next five years and will “extend and modernise DWP’s powers to stop fraud in its tracks, recover money lost to fraud and, crucially, help protect claimants who may already be on the edge financially from racking up debt”.The Government is determined to prevent incorrect payments where we can, so DWP will be given new powers to better identify and prevent potential overpayments.