The Department for Work and Pensions (DWP) is set to begin sweeping new checks on the bank accounts of benefit claimants, with the Labour government granting it significant new powers. The controversial move, aimed at clamping down on fraud and overpayments, is expected to affect up to 100,000 people annually once fully implemented.
New Powers and Projected Savings
The government has greenlit the so-called Eligibility Verification Measure, allowing the DWP to scrutinise claimants' financial data. The Office for Budget Responsibility (OBR) has validated the department's estimates, projecting that the measure will yield savings of up to £940 million over the next five years. Once the system is fully operational, the DWP anticipates annual savings of around £500 million.
The DWP plans a gradual, 'test and learn' rollout to allow for the establishment of robust processes. The initial focus will be on three benefits identified as having the highest rates of error and fraud: Pension Credit, Universal Credit, and Employment and Support Allowance (ESA). The department estimates it will identify between 50,000 and 100,000 overpayments each year as a direct result of these checks.
Criticism and 'Draconian' Fears
The new powers have been branded as "draconian" by critics and civil rights groups. In a letter to former Work and Pensions Secretary Liz Kendall, a coalition including Disability Rights UK, Age UK, Privacy International, Child Poverty Action Group, and Big Brother Watch voiced strong opposition.
They argued that imposing "suspicionless algorithmic surveillance on the entire public has the makings of a Horizon-style scandal," warning that vulnerable individuals would be most impacted if the system fails. "Pensioners, disabled people, and carers shouldn't have to live in fear of the government prying into their finances," the signatories wrote, describing the mass surveillance powers as "disproportionate."
Oversight and Implementation
In response to concerns, the DWP has pledged that there will be independent oversight and regular reporting of the Eligibility Verification powers to Parliament. The department insists the measure is a necessary tool to protect the integrity of the welfare system and ensure public funds reach those who are legally entitled to them.
The rollout signifies a major shift in how benefit eligibility is policed in the UK, moving towards greater automated financial scrutiny. The success and fairness of the programme will likely be closely watched by both supporters of welfare reform and advocates for claimant privacy and rights.
