The DWP will also check the bank details of millions of benefit claimants
DWP minister Andrew Western announces new anti-fraud measures
The DWP has issued a statement about major new powers coming in to tackle fraud in the benefits system. New laws have been added to the book allowing fraud investigators to directly take funds from people’s bank accounts if they owe an amount and are refusing to settle the debt. New eligibility checks are also being brought in to check the details of millions of claimants on 3 benefits, including Universal Credit.
DWP minister and minister for transformation, Andrew Western, said the laws mean the department will be able to “really go after” those who cheat the system and who refuse to pay up. He confirmed officials will “take the money straight from their account” in cases where debtors to refuse to settle their debts.
The powers to directly take funds from bank accounts are intended to be used where a person has left the benefits system. Under previous powers, the DWP could only recover funds through benefit deductions or from a person’s PAYE earnings.
In cases where investigators plan to raid someone’s bank account, they will give them at least 28 days’ notice to dispute the matter. Officials will also request at least three months of bank statements for the account, to make sure the person has the funds available. The amount will be deducted either as a lump sum or in regular instalments.
Mr Western said: “Benefit fraudsters have had it too easy for too long, but not any more. We’re getting tougher on those who rip off hard-working taxpayers and we make no apologies for it. New laws passed today [December 2] mean we can finally really go after the cheats, fraudsters and debtors.
“If those who can afford to refuse to pay back what they owe, we’ll take the money straight from their accounts and in some cases we’ll take their driving licences too.” The powers to suspend someone’s driving licence will be used in cases where the DWP has tried to recover an amount, but £1,000 or more is still owed.
Bank account checks for three benefits
The new laws also include new eligibility checks for people on three benefits. Investigators will contact banking providers to get details about accounts related to people claiming Universal Credit, Employment and Support Allowance, and Pension Credit. Officials will check people’s details to make sure they are entitled to their payments.
The DWP said it will not have direct access to people’s bank accounts. An independent person will be appointed to oversee the use of the new powers in the bill. They will check that the measures are effective and that they are only used when appropriate.
The legislation states that these eligibility checks could be expanded to other benefits.
‘The game is up’
Mr Western also said: “These fraudsters think they can game the system. Well, the game is up. By 2030, cracking down on this scandal will save £1.5billion, part of a massive £14.6billion clampdown on fraud and error.
“That’s money that should be going to people who genuinely need help, families struggling to make ends meet, people who’ve paid into the system their whole lives. The taxpayer deserves better value for their money. It’s time to restore trust in our benefits system, because when cheats prosper, everyone else loses.”