DWP gains new powers to take money directly from bank accounts
DWP gains controversial bank spying powers to fight benefit fraud
- The Department for Work and Pensions (DWP) has implemented new powers, referred to as the 'bank spying bill', to combat benefits fraud.
- The Public Authorities (Fraud, Error and Debt) Bill enables DWP agents to request specific financial information from benefit claimants' bank accounts, with financial institutions facing penalties for non-compliance.
- Information that can be requested includes account holder details, sort codes, and account numbers, but not transaction data, to verify benefit eligibility.
- The DWP will also acquire controversial new powers to directly deduct money from individuals' earnings or bank accounts through 'Direct Deduction Orders'.
- While the government expects these measures to save £1.5 billion by 2029/30, civil liberties groups have criticised them as “intrusive” and a step towards “mass financial surveillance”.