Latest news with #EligibilityVerificationMeasure
Daily Mirror
30-07-2025
- Business
- Daily Mirror
DWP update on new bank monitoring powers to tackle benefit fraud
The DWP will soon be able to force banks to hand over private financial details in what ministers have called the "biggest fraud crackdown in a generation" Millions of benefit claimants could have their bank accounts scrutinised by the Government under contentious new "snooping" powers being introduced by Labour. The Department for Work and Pensions (DWP) will soon have the authority to demand banks disclose private financial details as part of what ministers are dubbing the "biggest fraud crackdown in a generation". The plans are in the spotlight as a minister gave an update on the looming powers. The extensive measures are included in the Fraud, Error and Debt Bill, which is currently progressing through Parliament. Ministers maintain that these changes will assist in identifying those falsely claiming benefits, such as people with savings exceeding £16,000 who are not eligible for Universal Credit. However, critics argue that the Government is establishing a "system of mass financial surveillance" that could inadvertently ensnare innocent people. Baroness Maeve Sherlock, a DWP minister in the House of Lords, disclosed new aspects of the policy this week – including the crucial provision known as the Eligibility Verification Measure, which will compel banks to comply with official data requests. This will enable DWP agents to request personal details from financial institutions, including a claimant's name, date of birth, sort code, account number – and importantly, whether the account appears to violate benefit eligibility rules. Baroness Sherlock said: 'The information that can be requested under an Eligibility Verification Notice will include basic information about the account holder, such as name and date of birth, and the sort code and account number. Agents may also request information about whether the account meets eligibility requirements.' The powers are set to be rolled out in stages over the next 12 months, starting with a small group of banks. Officials say the crackdown is designed to recover an estimated £1.5 billion over five years by tackling fraud and correcting errors early – before they spiral into large amounts of unmanageable debt. A DWP spokesperson said: 'Our Fraud, Error and Recovery Bill includes an Eligibility Verification Measure which will require banks to share limited data on claimants who may wrongly be receiving benefits – such as those on Universal Credit with savings over £16,000. 'As well as tackling fraud, the new powers will also help us find genuine claim errors sooner, stopping people building up unmanageable debt. This measure does not give DWP access to any benefit claimants' bank accounts.' However, the proposals have already triggered fierce opposition from privacy advocates, who argue the fresh powers extend well beyond what is required. Civil liberties organisation Big Brother Watch told The Independent: "It threatens to usher in an unprecedented system of mass financial surveillance." Baroness Sherlock also confirmed that the DWP will also gain powers to directly seize money from individuals using Direct Deduction Orders – similar to those used by HMRC and the Child Maintenance Service. She stated that the department anticipates making between 5,000 and 20,000 deduction orders annually. The DWP argues that these measures are an essential tool for swiftly recovering money where overpayments have occurred. However, critics worry they could result in hardship for families already grappling with the cost-of-living crisis. Work and Pensions Secretary Liz Kendall has maintained that the powers are necessary to "restore trust in the welfare system" – but opposition voices are expected to intensify as the bill approaches the statute books.
North Wales Live
30-07-2025
- Business
- North Wales Live
DWP update on powers that will allow 'monitoring' of Brits' bank accounts
Labour's new Fraud, Error and Debt Bill is a key component of DWP plans to clamp down on benefit fraud, granting the department new powers to access information from claimants' bank accounts for various reasons. The Fraud, Error and Recovery Bill is set to come into effect from 2026, with the measures expected to save a total of £1.5 billion of taxpayers' money over the subsequent five years. The bill aims to crack down on benefit fraudsters. These new powers are part of a series of measures Labour claims will constitute the "biggest fraud crackdown in a generation." Further details have been provided on the DWP's plans to closely monitor people's bank accounts. Under the changes, benefit fraudsters could face driving disqualifications for up to two years if they refuse all opportunities to repay the money they owe, reports the Liverpool Echo. Currently being debated in the House of Lords, more details on how these powers will work have been revealed by Baroness Maeve Sherlock, a minster of state for the DWP. The key power that will enable the DWP to request banks to share financial information with its agents is called the Eligibility Verification Measure. The DWP will be able to gather information from more third-party organisations such as airlines to check if people are claiming benefits from abroad and potentially violating eligibility rules. The financial department 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 Department for Work and Pensions will identify people who may have exceeded the eligibility criteria for means-tested benefits, such as the £16,000 income threshold for Universal Credit. If a person is identified, the department will 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. This means DWP will not be able to see what people are spending money on. A DWP factsheet states: "Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence. Banks and other financial institutions could receive a penalty for oversharing information, such as transaction information." Baroness Sherlock outlines that the information the institution can be asked to share includes information about the account holder, including their name and date of birth. Agents can also ask for the bank account's sort code and account number, as well as details about how the account meets eligibility. Ministers say the government is introducing these powers to be able to determine if an individual is eligible for a benefit they are claiming or have applied for based on their financial position. Baroness Sherlock has said the measures will be implemented over 12 months, in a "phased approach" and work with a small number of banks initially. Based on its usage by HMRC and the Child Maintenance Service, Baroness Sherlock says DWP estimates it will make between 5,000 and 20,000 Direct Deduction Orders every year. A DWP spokesperson told The Independent: "Our Fraud, Error and Recovery Bill includes an Eligibility Verification Measure which will require banks to share limited data on claimants who may wrongly be receiving benefits – such as those on Universal Credit with savings over £16,000. "As well as tackling fraud, the new powers will also help us find genuine claim errors sooner, stopping people building up unmanageable debt. This measure does not give DWP access to any benefit claimants' bank accounts."
Daily Mirror
29-07-2025
- Business
- Daily Mirror
DWP latest on powers that will allow bank accounts to be 'monitored'
The DWP is set to be given new powers as part of its Fraud, Error and Recovery Bill which forms a central part of its plans to crackdown on benefit fraud Labour's new Fraud, Error and Debt Bill represents a key element of DWP strategies to tackle benefit fraud and will grant fresh powers to the department to seek information from claimants' bank accounts. The Fraud, Error and Recovery Bill has been confirmed to take effect from 2026, with the provisions being rolled out to safeguard a total of £1.5billion of taxpayers' money over the subsequent five years. The legislation is designed to target benefit fraudsters. The fresh powers have been brought in as part of a series of measures Labour claims will constitute the "biggest fraud crackdown in a generation." Further details have now been provided on the proposals for the DWP to monitor people's bank accounts closely, READ MORE: BT warning for anyone who still has UK landline in their home Under the changes, benefit cheats could face driving bans for periods of up to two years if they reject all chances to repay the money they owe. Currently under discussion in the House of Lords, additional details on how these powers will operate have been disclosed by Baroness Maeve Sherlock, a minister of state for the DWP. The primary power that will allow the DWP to request banks to share financial information with its agents is termed the Eligibility Verification Measure, reports the Liverpool Echo. The DWP will be able to collect information from additional third-party organisations such as airlines to verify if people are claiming benefits from abroad and potentially breaching eligibility rules. The financial department 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 Department for Work and Pensions will identify individuals who may have exceeded the eligibility criteria for means-tested benefits, such as the £16,000 income threshold for Universal Credit. If a person is identified, the department will then investigate that claimant to prevent possible overpayments and potential cases of fraud. The legislation only permits banks and other financial institutions to share limited data and excludes the sharing of transaction data. This means DWP will not be able to see what people are spending money on. A DWP factsheet states: "Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence. Banks and other financial institutions could receive a penalty for oversharing information, such as transaction information." Baroness Sherlock explains that the information the institution can be asked to share includes details about the account holder, including their name and date of birth. Agents can also request the bank account's sort code and account number, as well as details about how the account meets eligibility. Ministers claim the government is bringing in these powers to establish whether someone qualifies for a benefit they are receiving or have requested based on their financial circumstances. Baroness Sherlock said the measures will be rolled out over 12 months, using a "phased approach" and working with a limited number of banks at first. Drawing on its use by HMRC and the Child Maintenance Service, Baroness Sherlock says DWP anticipates it will issue between 5,000 and 20,000 Direct Deduction Orders annually. A DWP spokesperson told The Independent: "Our Fraud, Error and Recovery Bill includes an Eligibility Verification Measure which will require banks to share limited data on claimants who may wrongly be receiving benefits – such as those on Universal Credit with savings over £16,000. "As well as tackling fraud, the new powers will also help us find genuine claim errors sooner, stopping people building up unmanageable debt. This measure does not give DWP access to any benefit claimants' bank accounts."
Daily Mirror
04-07-2025
- Business
- Daily Mirror
DWP to start 'monitoring' bank accounts in 2026 to combat benefit fraud
The Department for Work and Pensions is set to introduce new fraud-combatting measures - here's what you need to know This year, the UK Government announced what it calls 'the biggest fraud crackdown in a generation', aiming to significantly reduce the misuse of funds within the welfare system. The Department for Work and Pensions (DWP) believes that the new Public Authorities (Fraud, Error and Recovery) Bill will be instrumental in saving taxpayers a hefty £1.5 billion over the coming five years. The bill introduces tough penalties, including driving bans of up to two years for persistent benefit fraudsters, as well as granting the DWP powers to directly seize funds from the bank accounts of those guilty of fraud. Additionally, the Eligibility Verification system will allow third parties, such as banks, to highlight suspicious benefit claims. The DWP has published 11 new factsheets to clarify how these measures will be safely implemented and monitored. These documents outline that the UK Government plans to start implementing the proposed measures in 2026. The factsheets also elaborate on the checks and balances, including reporting requirements and oversight mechanisms, designed to ensure that the new powers are used in a manner that is 'appropriate, proportionate, and effective'. According to the Daily Record, advice from states: "The Government will begin implementing the Bill measures from 2026. "For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance." The DWP will also gain the ability to gather data from additional third-party organisations, such as airlines, to confirm whether people are claiming benefits from abroad, potentially violating eligibility rules. Eligibility Verification Measure explained It's vital to note that the DWP won't have direct access to the bank accounts of millions of people receiving means-tested benefits like Universal Credit, Pension Credit and Employment and Support Allowance. The DWP will work alongside banks to identify people who may have surpassed the eligibility criteria for means-tested benefits, such as the £16,000 income limit for Universal Credit. Using this information, the DWP will scrutinise the claimant to prevent potential overpayments and possible fraud cases. The legislation only allows banks and other financial institutions to share limited data and forbids the sharing of transaction data, meaning the DWP won't be able to see how benefit recipients spend their money. Indeed, the factsheet makes it clear that banks and other financial institutions could face penalties for oversharing information, including transaction details. 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." New DWP steps to combat fraud The upcoming Bill will uphold the UK Government's manifesto promise to safeguard taxpayers' money, ensuring every pound is spent wisely and effectively: New powers of search and seizure - so DWP can control investigations into criminal gangs defrauding the taxpayer. Allowing DWP to recover debts from individuals no longer on benefits and not in PAYE employment who can pay money back but have avoided doing so. New requirements for banks and building societies to flag where there is an indication there may be a breach of eligibility rules for benefits - preventing debts accruing. All the powers will include strong safeguards to ensure they are only used appropriately and proportionately - including new inspection and reporting mechanisms. DWP will have a clearly defined scope and clear limitations for the use of all the powers it is introducing, and staff will be trained to the highest possible standards. This Bill will empower the Public Sector Fraud Authority to: Improve fraud management in future emergencies by creating specialist time-limited powers to be used in crisis management situations - building on lessons learned during COVID-19. Reduce fraud against the public sector by using its expertise to take action on behalf of other departments, against those who attack the public sector. Improve the government's ability to recover public money, through new debt recovery and enforcement powers. Use new powers of entry, search and seizure to reduce the burdens on the police in the most serious criminal investigations. Better detect and prevent incorrect payments across the public sector through new information gathering and sharing powers. Use strong non-criminal sanctions and civil penalties to provide an alternative to criminal prosecution and to deter fraud. The Public Sector Fraud Authority will adopt a 'test and learn' strategy when using these powers, trialling various methods and expertise to discover the most effective way to combat public sector fraud.
Daily Record
02-07-2025
- Business
- Daily Record
DWP start date for Eligibility Verification and ‘monitoring' bank accounts to tackle benefit fraud
The Eligibility Verification Measure will not give DWP direct access to bank accounts or enable investigators to see how people on benefits spend their money. Reasons your Universal Credit may be cut by DWP Earlier this year the UK Government announced 'the biggest fraud crackdown in a generation' to reduce the amount of money being lost in the welfare system. The Department for Work and Pensions (DWP) estimates the Public Authorities (Fraud, Error and Recovery) Bill will help save the taxpayer £1.5 billion over the next five years. New measures include driving bans of up to two years, for benefit cheats who repeatedly fail to pay back money they owe, powers enabling the DWP to recover money directly from fraudsters' bank accounts and Eligibility Verification, which will allow third-party organisations such as banks to flag potential fraudulent benefit claims. In a series of 11 new factsheets published by the DWP, giving more insight into how the new measures will work safely and be monitored, it confirms the UK Government will begin implementing the proposed measures from 2026. The factsheets also include information on how safeguards, reporting mechanisms and oversight will work to ensure the 'appropriate, proportionate, and effective use of the powers'. The guidance on states: 'The Government will begin implementing the Bill measures from 2026. For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. 'DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance.' The DWP will also be able to gather information from more third-party organisations such as airlines to check if people are claiming benefits from abroad and potentially violating eligibility rules. Eligibility Verification Measure It's important to be aware 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.' Have your say 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. New DWP measures to tackle fraud The new Bill will deliver on the UK Government's manifesto commitment to safeguard taxpayers' money - ensuring every pound is spent wisely and effectively: New powers of search and seizure - so DWP can control investigations into criminal gangs defrauding the taxpayer. Allowing DWP to recover debts from individuals no longer on benefits and not in PAYE employment who can pay money back but have avoided doing so. New requirements for banks and building societies to flag where there is an indication there may be a breach of eligibility rules for benefits - preventing debts accruing. All the powers will include strong safeguards to ensure they are only used appropriately and proportionately - including new inspection and reporting mechanisms. DWP will have a clearly defined scope and clear limitations for the use of all the powers it is introducing, and staff will be trained to the highest possible standards. The measures in this Bill will enable the Public Sector Fraud Authority to: Reduce fraud against the public sector by using its expertise to take action on behalf of other departments, against those who attack the public sector. Better detect and prevent incorrect payments across the public sector through new information gathering and sharing powers. Use strong non-criminal sanctions and civil penalties to provide an alternative to criminal prosecution and to deter fraud. Improve the government's ability to recover public money, through new debt recovery and enforcement powers. Use new powers of entry, search and seizure to reduce the burdens on the police in the most serious criminal investigations. Improve fraud management in future emergencies by creating specialist time limited powers to be used in crisis management situations - building on lessons learned during COVID-19. 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.
