Oliver Trapnell
Guest Reporter
The Department for Work and Pensions (DWP) is set to gain new powers to directly access bank accounts and wages in a major reform of combatting fraud.
The measures, introduced by Work and Pensions Secretary Liz Kendall, aim to tackle suspected benefit fraudsters, crack down on welfare fraud and save £1.6billion over the next five years through the enhanced powers.
Kendall unveiled plans to update the department's “outdated” investigatory tactics, which have remained unchanged for two decades.
The proposed measures, to be introduced in the upcoming Fraud, Error and Debt Bill, will also push private companies, including airlines, to share information with fraud investigators.
DWP investigators will be granted powers to recover debts directly from bank accounts and wages of those who have overclaimed benefits.
Currently, the only way to retrieve such debts is through court proceedings.
The expanded authority will also allow inspectors to seize assets from a deceased person's estate.
Defending the introduction of the new and invasive powers, Kendall said: “We're in an absurd situation where DWP's powers have not been updated for 20 years, meaning fraudsters have new ways of taking public money, and we need to keep pace with them.
“My team are still, in 2024, sending letters to gather evidence for those suspected of welfare fraud, slowing them down to snail's pace when they could be shutting down serious fraud cases.”
In a GB News poll, when asked if it's right for the DWP to take money out of bank accounts, 75 per cent said no, 22 per cent said yes, and three per cent they didn't know.
Benefit fraud has reached record levels in the UK, with official figures showing it cost taxpayers £7.3billion last year.
However, critics of the powers say the measures go too far.
Silkie Carlo, director of Big Brother Watch, warned: “This blank cheque to force private companies to snoop and report on the country's poorest citizens to the state is intrusive, excessive and will create a culture of fear among millions of people claiming benefits.
“For a Labour Government to introduce tough investigatory powers more typical of a counter-terror context to Britain's welfare system is an alarming attack on privacy and yet another assault on the poor.”
The Fraud, Error and Debt Bill is set to be introduced in the coming months with the Government emphasising that the new measures will be “proportionate and targeted” and will not apply to the state pension.
Is it right for DWP to take money straight out of bank accounts? Vote now in the poll above and have your say in the comments section below.
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