Universal Credit claimants are being warned about a £16,000 savings threshold as DWP officials have been handed new powers to snoop on bank accounts. The government department can demand account details where there is suspicion of fraud or wrongful payments, including checking savings and other income.
Benefits Affected by New Powers
The new powers apply to three benefits: Universal Credit, Employment and Support Allowance (ESA), and Pension Credit. For Universal Credit, there is a £16,000 savings threshold; claimants with more than this may not qualify. Officials can now identify cases where people have exceeded the limit and failed to declare it.
Government's Aim to Tackle Fraud
Ministers say the measures will help tackle billions wasted in benefit fraud every year and flag errors sooner. A DWP spokesperson stated: “Our Fraud, Error and Recovery Bill includes an Eligibility Verification Measure which will require banks to share limited data on claimants who may wrongly be receiving benefits – such as those on Universal Credit with savings over £16,000. As well as tackling fraud, the new powers will also help us find genuine claim errors sooner, stopping people building up unmanageable debt. This measure does not give DWP access to any benefit claimants’ bank accounts.”
Privacy Concerns Raised
However, privacy concerns have been raised. Sir Geoffrey Clifton-Brown, chair of the Public Accounts Committee, warned: “Make no mistake, the DWP’s new powers to reach further into citizens’ lives are significant. Our Committee of course firmly supports Government in its responsibility to ensure people are paid the correct benefits. But it is essential that these extensive new powers - of compulsion of disclosure over banks and financial institutions, of recovering funds directly from people’s accounts without the aid of the courts – have the risk of overreach mitigated against right from the outset.”
