DWP Bank Account Surveillance Could Reach Non-Benefit Recipients
The Department for Work and Pensions is currently consulting on new legislative powers that would significantly expand its authority to monitor and access bank accounts. These proposed measures, driven by the Labour government's urgent push to tackle welfare fraud and administrative errors, could extend surveillance to households that are not even receiving DWP benefits.
Hidden Legislative Clause Poses Broad Risk
Buried within the draft legislation is a critical provision that places individuals without DWP benefits at potential risk. The DWP has acknowledged that joint bank account holders could be affected under the Eligibility Verification Measure, even if they are not benefit claimants themselves.
The department explains this expansion by noting that when benefits are paid into a joint account, financial institutions may share information about all accounts held by both individuals with the DWP. This occurs because banks cannot determine which account holder is the actual benefit recipient without DWP disclosure.
How Joint Accounts Become Vulnerable
For household benefits like Universal Credit, the capital held by both joint account holders becomes relevant to eligibility assessments when they share a household. The DWP emphasizes that upon receiving this financial data, it will analyze the information thoroughly, and any details unrelated to benefit eligibility will not be shared or utilized by operational teams.
However, the department clarifies an important distinction: if a benefit-receiving account is linked to a joint account, only that specific joint account's details may be shared. Other accounts held solely by the non-claimant would remain protected unless they are directly linked to the benefit account.
Transparency and Awareness Measures
The DWP has committed to informing claimants about these potential surveillance extensions through multiple communication channels. All individuals holding accounts into which specified DWP benefits are deposited should be aware that their accounts and any linked accounts could be subject to financial institution scrutiny under this proposed measure.
This development represents a significant expansion of government financial surveillance authority, moving beyond traditional benefit claimant monitoring to potentially encompass broader segments of the population through shared financial arrangements.
