Latest news with #Duncan-Jordan
The National
30-04-2025
- Business
- The National
What DWP powers to spy on bank accounts mean for you
MPs approved the Public Authorities (Fraud, Error and Recovery) Bill at third reading on Tuesday evening and it will now progress to the House of Lords to undergo further scrutiny. The UK Government says that the bill seeks to curb multi-billion-pound benefit fraud by allowing the Department for Work and Pensions (DWP) to recover money directly from fraudsters' bank accounts, among other powers. It would also allow the DWP to obtain bank statements from people they believe have enough cash to pay back welfare debts but are refusing to do so. Courts could also suspend fraudsters' driving licences after an application by the DWP, if they owe welfare debts of more than £1000 and have ignored repeated requests to pay them back. READ MORE: Labour MSPs vote against giving Grangemouth and Scunthorpe equal support But a group of Labour MPs rebelled to support an amendment designed to curb Government powers to verify a person's benefit eligibility – and the LibDems warned the bill could result in 'Orwellian levels of mass surveillance of those who have means-tested benefits'. Speaking at third reading, Work and Pensions Secretary Liz Kendall told the Commons: 'Delivering our plan for change means ensuring every single pound of taxpayers' money is wisely spent and goes to those in genuine need. 'That is what this legislation will help deliver, with the biggest ever crackdown on fraud against the public purse.' Labour MP Neil Duncan-Jordan forced a vote on one of his amendments to the bill in a bid to curb Government powers to look at benefit claimants' accounts. Labour MP Neil Duncan-Jordan (Image: Richard Crease) The amendment would have meant the UK Government could only look into accounts belonging to people who officials have 'reasonable grounds to suspect has committed, is committing or intends to commit' an offence. Duncan-Jordan received the support of 10 Labour MPs in the division lobby but his amendment was rejected by 238 to 85, majority 153. Before the vote, Duncan-Jordan said: 'The Bill rightly seeks to tackle organised crime and online fraud, but also worryingly ushers in dangerous new powers compelling banks to trawl through financial information.' He added: 'It is the very poorest in our society which are going to be affected most by this legislation. So banks will be able to trawl for financial information even where there is no suspicion of wrongdoing. That's the key point in this debate.' Work and pensions minister Andrew Western had said Duncan-Jordan's amendment would 'undermine' the proposed new power designed to help verify a person's benefit eligibility. Western said: 'We do require this power because it will enable better data sharing between the private and public sector to help check claimants are meeting the criteria for their benefits and to detect incorrect payments at an earlier stage before any suspicion of wrongdoing has arisen. 'It is not a power to be used to respond to suspected fraud. Information will not be shared with the DWP under the assumption that a claimant is guilty of any wrongdoing. The DWP must look into why the account has been flagged by the bank and ascertain whether an incorrect payment has been made.' Western said the DWP would also make further enquiries to determine whether a benefit has been incorrectly paid and whether this was due to fraud or error. After the vote passed, former Labour shadow chancellor John McDonnell said: 'Not long ago under Keir Starmer we opposed the Conservatives plans for the mass surveillance of people's bank accounts if they were claiming benefits. Today Labour voted for exactly that. 'I didn't because it's another stigmatising attack on the poorest.' What does the Labour bill mean for me? The Public Authorities (Fraud, Error and Recovery) Bill is divided into two parts, the first of which relates to the Public Sector Fraud Authority (PSFA) and only applies in England and Wales. The second part of the bill also covers Scotland, and would give the DWP powers to snoop on Scottish benefit claimants. These powers include:
Daily Record
30-04-2025
- Business
- Daily Record
New update on DWP plans to ‘monitor' bank accounts to stop benefit fraud
New proposed Department for Work and Pensions (DWP) reforms set to deliver the 'biggest ever crackdown on fraud against the public purse' have been cleared in Parliament and will now progress to the House of Lords for further scrutiny. The Public Authorities (Fraud, Error and Recovery) Bill seeks to curb multibillion-pound benefit fraud and includes allowing the DWP to recover money directly from fraudsters' bank accounts. The Bill would also allow the DWP to have the power to obtain bank statements from people they believe have enough cash to pay back welfare debts but are refusing to do so - but they would not be able to directly access accounts or see how claimants' spend their money. Courts could also suspend fraudsters' driving licences after an application by the DWP, if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay them back. However, a group of Labour MPs rebelled to support an amendment designed to curb UK Government powers to verify a person's benefit eligibility and the Liberal Democrats work and pensions spokesman Steve Darling detailed several 'major concerns' from his party, including 'Orwellian levels of mass surveillance of those who have means tested benefits'. Conservative former Brexit secretary David Davis said it could mean more than nine million people are put at risk of 'unnecessary' surveillance. John Milne, the Liberal Democrat MP for Horsham, warned it would be 'the innocent and the accidental claimants who fall into the trap', rather than deliberate benefit fraudsters. He said: 'The implicit assumption is that we should trust in the DWP as a completely error-free organisation across the entirety of its massive operation, but they do make mistakes - they make mistakes all the time, and even when they know they've made a mistake, and they've been told so, they're very capable of making the same mistake again.' Speaking at third reading, Work and Pensions Secretary Liz Kendall told MPs: 'Delivering our Plan for Change means ensuring every single pound of taxpayers' money is wisely spent and goes to those in genuine need. 'That is what this legislation will help deliver, with the biggest ever crackdown on fraud against the public purse.' Labour MP Neil Duncan-Jordan (Poole) forced a vote on one of his amendments to the Bill in a bid to curb UK Government powers to look at benefit claimants' accounts. The amendment would have meant the UK Government could only look into accounts belonging to people who the Government 'has reasonable grounds to suspect has committed, is committing or intends to commit' an offence. Mr Duncan-Jordan received the support of 10 Labour MPs in the division lobby but his amendment was rejected by 238 to 85, majority 153. Before the vote, Mr Duncan-Jordan said: 'The Bill rightly seeks to tackle organised crime and online fraud, but also worryingly ushers in dangerous new powers compelling banks to trawl through financial information.' He added: 'It is the very poorest in our society which are going to be affected most by this legislation. So banks will be able to trawl for financial information even where there is no suspicion of wrongdoing. That's the key point in this debate.' DWP Minister Andrew Western had said Mr Duncan-Jordan's amendment would 'undermine' the proposed new power designed to help verify a person's benefit eligibility. Mr Western said: 'We do require this power because it will enable better data sharing between the private and public sector to help check claimants are meeting the criteria for their benefits and to detect incorrect payments at an earlier stage before any suspicion of wrongdoing has arisen. 'It is not a power to be used to respond to suspected fraud. Information will not be shared with the DWP under the assumption that a claimant is guilty of any wrongdoing. The DWP must look into why the account has been flagged by the bank and ascertain whether an incorrect payment has been made.' Mr Western said the DWP would also make further enquiries to determine whether a benefit has been incorrectly paid and whether this was due to fraud or error. Shadow work and pensions secretary Helen Whately said the Conservatives 'support many of the measures' in the Bill, adding she was 'disappointed' that their amendments were rejected by the Labour Government. They included proposals to create specific offences and lengthy prison sentences to target so-called 'sickfluencers' who use social media to help people fraudulently claim benefits. Ms Whately said: 'Why should we tolerate people using social media platforms to help others commit fraud, helping people cheat the tests which are there so support goes to those who need it? 'Why should someone who has committed fraud be able to keep their high-end television or luxury car just because they've spent their ill-gotten gains before the department gets to them? We're clear that both of those things should be tackled but sadly Labour has shown themselves to be on the side of the fraudsters instead.' It's important to be aware that the DWP will not have direct access to the bank accounts of millions of people on means-tested benefits including Universal Credit, Pension Credit and Employment and Support Allowance. The DWP will work with banks to identify people who may have exceeded the eligibility criteria for means-tested benefits, such as the £16,000 income threshold for Universal Credit - and get that information to then investigate that claimant to prevent possible overpayments and potential cases of fraud. The legislation only allows banks and other financial institutions to share limited data and excludes the sharing of transaction data, which means DWP will not be able to see how people on benefits spend their money. In fact, the factsheet explains how banks and other financial institutions could receive a penalty for oversharing information, such as transaction information. It adds: 'Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence.' What do you think about the new measure? Share your opinion in our poll and the comments below. You can also join in the conversation in our Daily Record Money Saving Scotland Facebook group here. The new Bill will deliver on the UK Government's manifesto commitment to safeguard taxpayers' money - ensuring every pound is spent wisely and effectively: The measures in this Bill will enable the Public Sector Fraud Authority to: The Public Sector Fraud Authority will implement a 'test and learn' approach when utilising these powers, piloting different approaches and expertise to find the best way to tackle public sector fraud.
The National
26-04-2025
- Business
- The National
Labour MPs revolt over plans to raid benefits claimants' bank accounts
Labour have adopted the former Conservative government's plans for debt recovery in an attempt to make up the annual £9.7 billion in benefits overpayments the Department for Work and Pensions (DWP) says it makes due to fraud or error. The Public Authorities (Fraud, Error and Recovery) Bill would give the DWP the power to require banks to provide data to help identify when an applicant is not meeting the eligibility criteria for a benefit for which they have applied. READ MORE: Scottish Labour councillor blasts own party for pushing families into poverty The bill would allow the Government to demand bank statements to identify debtors who have sufficient funds to repay what they owe through fraud or error in a claim. The DWP would then have the power to recover money directly from bank accounts of those not on benefits or in PAYE employment who are identified as having the means to pay. Under the plans, those who repeatedly fail to repay funds could fall prey to a suspended DWP disqualification order that would disqualify them from holding a driving licence. 'A poverty penalty' Work and Pensions Secretary Liz Kendall said the bill is necessary to deal with a "broken welfare system", adding that the use of "direct deduction orders" could save £500 million a year once fully rolled out. Liz Kendall (Image: Lucy North/PA Wire) Yet she is facing opposition from her own backbenches, as amendments tabled by Labour MP for Poole, Neil Duncan-Jordan, which would force the Government to drop key parts of the bill, is gaining support from a number of Labour MPs. The amendments, backed by 17 named Labour MPs, would ensure that only those suspected of fraud rather than being the victim of an error were subjected to surveillance, 'allowing the government to target criminality without monitoring the public', Duncan-Jordan said. READ MORE: Scottish Labour MP breaks ranks to call out UK Government disability cuts The Labour MP is also proposing to remove the power to apply to a court to strip people of their driving licences due to debt, describing the policy as a 'poverty penalty'. Among those to have supported Duncan-Jordan's amendment are Zarah Sultana, Richard Burgon, Nadia Whittome and Clive Lewis. The only Scottish Labour MP to have backed the amendment is Brian Leishman, the MP for Alloa and Grangemouth. Brian Leishman (centre) (Image: PA) The banking industry has raised concerns that it will be forced to hand over account information of claimants in cases where there are indications they may have been paid benefits incorrectly. The legislation is seen to potentially clash with the obligations of banks under a Financial Conduct Authority consumer duty to protect customers who are vulnerable due to their financial situation. A DWP spokesperson said: 'We have an obligation to protect public funds, and it is right that we modernise our approach to catching fraudsters and overpayments. 'All the powers in the bill are underpinned by a principle of fairness and proportionality and do not involve mass surveillance of people's bank accounts. 'This includes utilising limited data from banks to help verify entitlement to benefits, helping us detect errors earlier and minimise debts accruing for claimants.'
Business Mayor
25-04-2025
- Business
- Business Mayor
Starmer faces Labour revolt over plan to raid bank accounts of benefit claimants
Keir Starmer is facing a rebellion over his plan to use direct deductions from people's bank accounts and the cancellation of driving licences as part of a government crackdown on welfare fraud and over-claiming. In an attempt to claw back the annual £9.7bn in benefit overpayments made by the Department for Work and Pensions due to fraud or error, the government has adopted Conservative plans for debt recovery. A fraud, error and recovery bill would give the DWP the power to require banks to provide data to help identify when an applicant is not meeting the eligibility criteria for a benefit for which they have applied. The bill would allow the government to demand bank statements to identify debtors who have sufficient funds to repay what they owe through fraud or error in a claim. The DWP would then have the power to recover money directly from bank accounts of those not on benefits or in PAYE employment who are identified as having the means to pay. Those who repeatedly fail to repay funds could fall prey to a suspended DWP disqualification order that would disqualify them from holding a driving licence. Liz Kendall, the secretary of state for work and pensions, has said the powers are necessary to deal with a 'broken welfare system' but she is facing opposition from her own backbenches. Amendments tabled by the Labour MP for Poole, Neil Duncan-Jordan, that would force the government to drop key strands of the bill are supported by a growing number of MPs in Starmer's party. The amendments, backed by 17 named Labour MPs, would ensure that only those suspected of fraud rather than being the victim of an error were subjected to surveillance, 'allowing the government to target criminality without monitoring the public', Duncan-Jordan said. The Labour MP is also proposing to remove the power to apply to a court to strip people of their driving licences due to debt, describing the policy as a 'poverty penalty'. Writing in the Guardian, Duncan-Jordan, who was elected for the first time in 2024, accused Starmer's government of 'resurrecting Tory proposals for mass spying on people who receive state support'. He writes that the legislation 'would compel banks to carry out financial surveillance of welfare recipients', adding that 'given the volume of accounts involved, this will be completed by an algorithm'. 'If the software flags a possible overpayment, whether due to fraud or error, the bank will report the individual to the Department for Work and Pensions for further investigation,' Duncan-Jordan writes. 'By default, welfare recipients would be treated as suspects, simply because they need support from the state.' He adds that the government should learn from the Post Office scandal in which a faulty computer system led to hundreds of people being falsely accused of fraud and error. He writes: 'The risk of a Horizon-style scandal on a massive scale is glaringly obvious when millions are being monitored. It will be disabled people, carers, pensioners and the very poorest people who are impacted by wrongful investigations and forced to endure burdensome appeals to prove their innocence.' skip past newsletter promotion Our morning email breaks down the key stories of the day, telling you what's happening and why it matters Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy. We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Kendall has said the use of 'direct deduction orders' allowing the recovery of funds from claimants could save the taxpayer £500m a year once fully rolled out. In the 2023-24 financial year, the DWP estimates that benefit overpayments due to fraud or error by claimants totalled £9.7bn. But the banking industry has raised concerns that it will be forced to hand over account information of claimants in cases where there are indications they may have been paid benefits incorrectly. The legislation is seen to potentially clash with the obligations of banks under a Financial Conduct Authority consumer duty to protect customers who are vulnerable due to their financial situation. Last week, the Guardian revealed that the regulatory policy committee, a government watchdog, had raised concerns that ministers had understated the impact on the poorest of its plans to directly deduct benefit overpayments from people's bank accounts. A DWP spokesperson said: 'We have an obligation to protect public funds, and it is right that we modernise our approach to catching fraudsters and overpayments. All the powers in the bill are underpinned by a principle of fairness and proportionality and do not involve mass surveillance of people's bank accounts. 'This includes utilising limited data from banks to help verify entitlement to benefits, helping us detect errors earlier and minimise debts accruing for claimants.'
The Guardian
25-04-2025
- Business
- The Guardian
Starmer faces Labour revolt over plan to raid bank accounts of benefit claimants
Keir Starmer is facing a rebellion over his plan to use direct deductions from people's bank accounts and the cancellation of driving licences as part of a government crackdown on welfare fraud and over-claiming. In an attempt to claw back the annual £9.7bn in benefit overpayments made by the Department for Work and Pensions due to fraud or error, the government has adopted Conservative plans for debt recovery. A fraud, error and recovery bill would give the DWP the power to require banks to provide data to help identify when an applicant is not meeting the eligibility criteria for a benefit for which they have applied. The bill would allow the government to demand bank statements to identify debtors who have sufficient funds to repay what they owe through fraud or error in a claim. The DWP would then have the power to recover money directly from bank accounts of those not on benefits or in PAYE employment who are identified as having the means to pay. Those who repeatedly fail to repay funds could fall prey to a suspended DWP disqualification order that would disqualify them from holding a driving licence. Liz Kendall, the secretary of state for work and pensions, has said the powers are necessary to deal with a 'broken welfare system' but she is facing opposition from her own backbenches. Amendments tabled by the Labour MP for Poole, Neil Duncan-Jordan, that would force the government to drop key strands of the bill are supported by a growing number of MPs in Starmer's party. The amendments, backed by 17 named Labour MPs, would ensure that only those suspected of fraud rather than being the victim of an error were subjected to surveillance, 'allowing the government to target criminality without monitoring the public', Duncan-Jordan said. The Labour MP is also proposing to remove the power to apply to a court to strip people of their driving licences due to debt, describing the policy as a 'poverty penalty'. Writing in the Guardian, Duncan-Jordan, who was elected for the first time in 2024, accused Starmer's government of 'resurrecting Tory proposals for mass spying on people who receive state support'. He writes that the legislation 'would compel banks to carry out financial surveillance of welfare recipients', adding that 'given the volume of accounts involved, this will be completed by an algorithm'. 'If the software flags a possible overpayment, whether due to fraud or error, the bank will report the individual to the Department for Work and Pensions for further investigation', Duncan-Jordan writes. 'By default, welfare recipients would be treated as suspects, simply because they need support from the state.' He adds that the government should learn from the Post Office scandal in which a faulty computer system led to hundreds of people being falsely accused of fraud and error. He writes: 'The risk of a Horizon-style scandal on a massive scale is glaringly obvious when millions are being monitored. It will be disabled people, carers, pensioners and the very poorest people who are impacted by wrongful investigations and forced to endure burdensome appeals to prove their innocence.' Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Kendall has said the use of 'direct deduction orders' allowing the recovery of funds from claimants could save the taxpayer £500m a year once fully rolled out. In the 2023-24 financial year, the DWP estimates that benefit overpayments due to fraud or error by claimants totalled £9.7bn. But the banking industry has raised concerns that it will be forced to hand over account information of claimants in cases where there are indications they may have been paid benefits incorrectly. The legislation is seen to potentially clash with the obligations of banks under a Financial Conduct Authority consumer duty to protect customers who are vulnerable due to their financial situation. Last week, the Guardian revealed that the regulatory policy committee, a government watchdog, had raised concerns that ministers had understated the impact on the poorest of its plans to directly deduct benefit overpayments from people's bank accounts. The DWP has been contacted for comment.
