The UK Government has announced significant changes to the powers of the Department for Work and Pensions (DWP) aimed at tackling benefit fraud and overpayments. These modifications follow the enactment of the Public Authorities (Fraud, Error and Recovery) Act, which received Royal Assent, and are projected to save the taxpayer approximately £1.5 billion by 2030. The overarching goal is to achieve savings of £14.6 billion by 2031.
Andrew Western, Minister for Transformation, emphasized the necessity of these changes, stating, “It is right that as fraud against the public sector evolves, the Government has a robust and resolute response.” He noted that the new powers will enhance the DWP’s ability to identify, prevent, and deter fraud, while also streamlining the recovery of debts owed to the public.
New Powers Granted to DWP
The DWP’s expanded authority includes several key measures designed to improve the efficiency of fraud detection and debt recovery:
1. **Bank Account Checks**: Under the new legislation, DWP agents can request financial information directly from the bank accounts of benefit claimants. The Eligibility Verification Measure allows the DWP to compel banks to provide necessary information, enhancing their ability to track fraudulent activity.
2. **Direct Deductions**: The DWP can now implement Direct Deduction Orders to recover funds directly from individuals’ earnings or bank accounts. This power has raised concerns, particularly from advocacy groups like Disability Rights UK, which argue that it could disproportionately affect vulnerable populations.
3. **Information Notices**: A legal letter will be issued to individuals, mandating them to provide specific information regarding themselves or suspected fraud cases. Civil liberties organization Big Brother Watch has cautioned against the potential for creating a “second-tier justice system” for welfare recipients.
4. **Recovery Notices**: The Government will send notifications to individuals regarding legal proceedings aimed at recovering owed amounts. Critics, including Labour MP Debbie Abrahams, expressed concerns that these measures might deter vulnerable individuals from engaging with the DWP.
5. **Penalty Decision Notices**: Individuals will receive letters detailing forthcoming financial penalties and their justifications. A petition against the bill highlighted fears over the erosion of financial privacy and the presumption of innocence.
6. **Penalty Notices**: These will inform individuals of penalties that must be paid by a specified deadline.
7. **Deductions from Earnings Order**: For those employed, the Government now holds the authority to deduct overdue payments directly from salaries.
Concerns and Criticism
While the Government supports the measures aimed at curtailing fraud, the rapid progression of the bill has drawn scrutiny. Helen Whately, the Shadow Secretary for Work and Pensions, acknowledged the Conservative Party’s support for the bill but raised questions about the adequacy of testing for the new system, pointing to past failures such as the Horizon scandal.
The combination of these powers has sparked a heated debate about the balance between combating fraud and protecting the rights of citizens. Critics maintain that the measures may disproportionately harm those most in need of support, fostering distrust towards the DWP. As the Government implements these changes, the impact on claimants and the broader welfare system remains to be seen.
For further details on these new powers, the DWP has made additional resources available to the public.
