The Department for Work and Pensions (DWP) has been granted significant new powers that will allow officials to monitor and access bank account information across fifteen major UK financial institutions. This controversial legislation, set to be implemented this year, mandates that banks must comply with requests to hand over detailed account data to the DWP.
New Snooping Powers Aim to Combat Fraud
Ministers have defended the move as a crucial step in tackling widespread and costly benefit fraud, which they argue drains public funds. Under the new rules, the DWP will be able to issue Eligibility Verification Notices (EVNs) to banks and other financial institutions. These notices require institutions to examine the data they hold on specified accounts and provide information to help verify a claimant's entitlement to benefits, such as Universal Credit, Employment and Support Allowance (ESA), and Pension Credit.
Privacy Concerns and State Intrusion
Despite the government's insistence on the necessity of these powers for fraud prevention, the measures have sparked significant concerns over privacy and state intrusion. Critics warn that the ability to spy on savings and account details could lead to overreach and infringe on individual rights. The DWP has stated that the information will be used to determine if someone has excessive savings that disqualify them from receiving benefits, but privacy advocates remain wary of the potential for misuse.
List of Banks Affected by the New Rules
The legislation applies to a comprehensive list of fifteen banks, which will be forced to comply with the DWP's requests. The banks, listed alphabetically, are:
- Bank of Scotland
- Barclays
- Halifax
- HSBC
- Lloyds Bank
- Metro Bank
- Monzo Bank Limited
- NatWest
- Nationwide
- Santander
- Starling
- The Co-op
- RBS
- TSB
- Yorkshire Bank
Direct Withdrawals and Debt Recovery
In addition to monitoring accounts, the new powers enable the DWP to make direct withdrawals from accounts to recover money owed. This can be done by issuing a direct deduction order to the individual's bank for repayment. In more severe cases, where individuals have persistently and deliberately evaded debt repayment, the DWP can apply to the court to temporarily disqualify a debtor from holding a driving licence, provided the court is satisfied that the person had the means to repay and did not do so without good reason.
Consultation and Implementation
The DWP recently launched a consultation on these plans, seeking feedback on the implementation and safeguards. The department emphasised that the Act is designed to help identify incorrect payments and ensure that benefits are only paid to those who are truly eligible. However, the move has ignited a broader debate about the balance between fraud prevention and protecting civil liberties in the digital age.
