The DWP has new powers to clamp down on wrongful benefit payments (Image: Getty)
Security experts have raised major concerns about a raft of new anti-fraud powers to be used by the DWP and other public authorities. New laws were recently added to the books in an effort to clamp down on fraud and incorrect payments in the benefits system.
The new measures include eligibility checks to look into bank account details of people on certain benefits. Under the Eligibility Verification Measure, the DWP will order account providers to look over accounts linked to three benefits, to flag up any accounts that may not eligible for their payments.
They will then provide the DWP with details of these accounts. The DWP has said that it will not have access to people’s bank accounts as part of the checks and that the banks will only “limited data” with their investigators.
These checks will initially check the account information of those receiving Universal Credit, Pension Credit and Employment and Support Allowance. This measure may be extended to other benefits.
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The recently approved laws also permit officials to directly take cash from someone’s bank account when they owe the DWP money and are refusing to repay their debt. These powers will target people who owe money and have exited the benefits system.
DWP bosses say the new powers will save the taxpayer £2.1billion over the next five years. But critics warn that the sweeping new measures could scare claimants into not checking with the DWP that their details are correct.
Phil Cotter, CEO at anti-fraud experts SmartSearch, said: “There is a real risk of that people will be put off contacting the DWP about changes to their circumstances if these new powers are not used carefully and communicated clearly. Most benefit claimants are honest and want to get things right, but if they feel that if they contact the DWP it could lead to their bank accounts being scrutinised or their case being flagged indefinitely, it could discourage exactly the kind of engagement the system relies on.”
The Public Accounts Committee, which oversees Government spending, recently called for new safeguards around the use of the powers. The MP committee want the DWP to report to them once a year on the use of the measures.
Mr Cotter said: “These new powers should be targeted at identifying complex, high-risk cases of organised or deliberate fraud, not creating a situation where genuine claimants are afraid to report changes in their circumstances. If the DWP is to maintain public trust it will need to ensure it is transparent about when bank checks are used and make it clear when it is conducting a routine claimant check and when it is investigating potential fraud.”
The security expert said that bank account checks could be an “incredibly useful tool” to identify wrongful payments. But he said they need to be used carefully to avoid people being wrongly targeted.
Mr Cotter warned: “Acting on information from a bank account check alone could easily lead to false positives if taken out of context. The most effective use would be to use bank account checks alongside other checks, for example, on cases already flagged by multiple risk indicators.
“This would include things like identity inconsistencies, links to multiple accounts, or patterns associated with organised fraud. If you combine bank data with good digital identity verification and solid cross-checks with HMRC, DWP and other government data, you get a much clearer picture of eligibility, without wrongfully identifying legitimate claimants in the process.”
When the legislation was made law, DWP minister Andrew Western said: “It is right that as fraud against the public sector evolves, the Government has a robust and resolute response. The powers granted through the bill will allow us to better identify, prevent and deter fraud and error, and enable the better recovery of debt owed to the taxpayer.
“A benefits system people can trust is essential for claimants and taxpayers alike – through this bill that’s exactly what we’ll deliver.”
