The Department for Work and Pensions (DWP) has launched a major new offensive against benefit fraud, promising a "robust" strategy that will leave cheats with "no hiding place." The Labour government forecasts that the crackdown will save taxpayers a substantial £1.5 billion by the 2029/2030 financial year.
New Powers to Access Bank Data
Central to the new strategy is enhanced data access for the DWP. Under fresh legislation, the department will utilise a process known as the Eligibility Verification Measure to check information held by banks. This is designed to identify fraudulent claims and prevent costly overpayments that can push legitimate claimants into debt.
The government has moved to allay privacy concerns, stating clearly that no personal information will be shared by the DWP with banks. Officials also emphasised that the department will not be able to scrutinise individuals' spending habits or transactions within their accounts.
Targeted Benefits and Debt Recovery
The initial focus of the enforcement drive will be on three key welfare payments: Universal Credit, Employment and Support Allowance (ESA), and Pension Credit. The aim is to catch fraudsters and recover funds lost to both criminal activity and error.
Beyond investigation, the DWP has acquired extra powers to proactively pursue debtors. The legislation arms the Public Sector Fraud Authority and other government departments with stronger tools to recover billions owed to the public purse.
Government's 'Resolute Response' to Evolving Fraud
Minister for Transformation, Andrew Western MP, justified the hardline approach, stating that the government must have a "resolute response" as fraud tactics against the public sector evolve. He pledged that the new law would help build a benefits system that both claimants and taxpayers can have confidence in.
This comprehensive strategy marks a significant escalation in the government's efforts to safeguard public funds, combining new technological capabilities with stronger legal powers to deter, detect, and reclaim money lost to fraud.
