DWP Faces Warning Over 'Risks' of New Bank Surveillance Powers
The Department for Work and Pensions has been issued a stark warning regarding the potential dangers associated with its extensive new bank-checking authorities. Millions of benefit claimants across the United Kingdom now face having their personal accounts scrutinised to verify they are receiving the correct entitlement amounts.
Committee Raises Concerns Over Proportionality and Trust
The influential Public Accounts Committee has expressed significant concerns about how the DWP intends to implement these sweeping new powers. The committee insists that more should be done at the source to prevent incorrect payments from being issued initially, rather than relying heavily on retrospective account monitoring.
The Public Authorities Act 2025 grants the DWP unprecedented legal authority to compel financial institutions to provide detailed claimant data. This legislative measure is specifically designed to verify benefit eligibility and assist in various criminal investigations concerning fraudulent claims.
Direct Account Access Without Court Orders
A particularly contentious aspect involves the DWP's ability to recover outstanding amounts directly from personal bank accounts without obtaining traditional court orders. The PAC has emphasised that such significant governmental powers demand rigorous mitigation strategies to prevent potential overreach and protect citizen privacy.
To ensure proper transparency and accountability, the committee has urgently recommended that the department publish comprehensive annual reports detailing exactly how frequently these powers are exercised. This level of disclosure is viewed as absolutely essential for maintaining public confidence in how the state handles sensitive financial information.
Systemic Errors and Administrative Challenges
Alongside these new enforcement capabilities, the DWP faces mounting pressure to strengthen its internal controls to prevent overpayments from occurring in the first instance. Experts suggest that improved data sharing between different government departments could verify entitlements more accurately at source, reducing subsequent errors.
The committee's report highlighted a major administrative error involving 26,000 carers who were incorrectly flagged for overpaying their Carer's Allowance. Officials estimate it will require approximately two years to review 200,000 cases and rectify these distressing mistakes that have caused considerable anxiety among vulnerable claimants.
Balancing Fraud Prevention with Claimant Support
While combating fraud remains a clear priority, the committee identified "unfulfilled eligibility" as a growing concern, with an estimated £3.7 billion in benefits going unclaimed during the 2024–25 period. Many claimants, particularly those receiving disability benefits, are failing to report when their health conditions have deteriorated, which could qualify them for enhanced payment rates.
The PAC has recommended that the department thoroughly evaluate its methods for encouraging claimants to report changes in their circumstances. This balanced approach aims to ensure people receive their full entitled support while simultaneously reducing the risk of accidental administrative errors.
Serious Implications for Privacy and Civil Liberties
Sir Geoffrey Clifton-Brown, a prominent committee member, emphasised that while the committee supports benefit accuracy, reaching further into citizens' private financial lives represents a serious governmental step with genuine "risk of overreach." He stated unequivocally that robust safeguards must be operational from the very outset to adequately protect public privacy and maintain essential trust in the benefits system.
The ongoing tension between preventing fraud and respecting privacy continues to present complex challenges for policymakers as they implement these far-reaching financial surveillance powers affecting millions of UK residents.
