The Government will soon be rolling out new powers allowing the Department for Work and Pensions (DWP) to request details of the bank accounts of benefit claimants, in efforts to crack down on suspected fraud. Under the forthcoming Fraud, Error and Debt Bill, officials will be able to examine an individual’s financial activity, to uncover evidence of wrongful benefit payments.
Ben Fleming, a financial crime specialist from Ocean Finance, believes the new powers could be implemented soon. He said: “While there’s no confirmed start date for this DWP change, it’s likely these powers will begin to be used within the next year, as fraud prevention is usually a high priority for the Government.”
The newly granted powers will allow banks to check if a claimant has savings that surpass the limits for means-tested benefits. Investigators will also look for signs of overseas transactions, indicating prolonged trips abroad, in cases where a person’s benefits do not allow this.
The DWP has asserted it will not have access to view individual bank account contents or share personal data with third parties. Mr Fleming warned that innocent benefit recipients may feel “unnecessary anxiety” about being mistakenly suspected.
He pointed to the need for proper safeguards to ensure the measures are used only when necessary. He stressed: “Clear communication is essential. If a claimant’s account is flagged, they should be notified promptly and provided with a straightforward explanation of the process.”Any investigation should start with a conversation—not an assumption of guilt. Claimants should have the chance to explain any unusual transactions or discrepancies before further action is taken.”
He highlighted further issues, insisting that the DWP must be accurate when flagging suspicions and called for any automated checks to be backed up by human oversight. Moreover, he emphasised the importance of providing support services to claimants under investigation, ensuring they know their rights and have assistance throughout the process.
Looking at other methods for reducing benefit fraud, Mr Fleming said: “Improving ID checks or cross-referencing information with other systems could help identify false claims before payments are made. However, this should be done carefully so it doesn’t create extra barriers for people who genuinely need help.”
He further suggested working to address the underlying issues that might lead individuals to commit benefit fraud. He said: “In some cases, financial pressure might push people into making dishonest claims. Offering better access to budgeting advice and support for those struggling could reduce the temptation to bend the rules.”