The UK government is set to introduce new legislation that will empower officials from the Department for Work and Pensions (DWP) with broad authority to examine the bank accounts of individuals receiving benefits. The proposed bill, currently advancing in Parliament, includes provisions for conducting eligibility verifications, allowing investigators to request banks to disclose account details for those receiving specific benefits.

Initially, the legislation will focus on millions of individuals claiming Universal Credit, Pension Credit, and Employment and Support Allowance. However, there is potential for expansion to cover additional benefit programs in the future.

According to George Kampanella, head of business crime and regulatory at Taylor Rose law firm, the new legislation could represent a significant advancement in enhancing the government’s ability to confirm claimants’ eligibility and utilize anti-fraud measures to identify and recover funds from fraudulent cases. This initiative is expected to streamline the process of verifying income and savings, leading to more accurate benefit payments and reducing instances of overpayments, especially in programs like Universal Credit where changes in circumstances often go unreported.

The bill also grants officials the authority to directly retrieve funds from an individual’s bank account if they owe money to the DWP and refuse to repay despite prior requests. In such cases, the DWP will need to obtain at least three months’ worth of bank statements to confirm the availability of funds before making deductions.

The DWP anticipates that the new legislation will aid in reclaiming £1.5 billion in funds by modernizing its powers to ensure efficient allocation of resources to genuine recipients and prevent exploitation of the system. The bill aims to strengthen actions against individuals attempting to defraud the system, providing a robust deterrent to potential fraudsters while ensuring that public funds are utilized responsibly.

Mr. Kampanella highlighted the potential broader applications of these measures, suggesting that other government departments like HMRC, the Home Office, and the Department for Business, Energy & Industrial Strategy could benefit from enhanced fraud detection, improved eligibility checks, and streamlined case management. However, he emphasized the importance of crafting these powers carefully to avoid overreach and protect individuals’ rights. The legislation outlines the appointment of an independent overseer to monitor the implementation of these measures, ensuring their appropriate usage and effectiveness in achieving their intended goals.