The Department for Work and Pensions (DWP) has officially confirmed which welfare benefit will be the next target for enhanced bank account monitoring, following the implementation of similar measures for Universal Credit. This significant announcement was made by DWP Permanent Secretary Peter Schofield during a recent appearance before the Work and Pensions Select Committee.
Expanding Fraud Prevention Measures
Under the current Labour government, the DWP has been granted expanded powers to conduct bank account checks as part of a broader initiative to tackle the growing issue of welfare fraud and error across the benefits system. This legislative move represents a substantial shift in how the department monitors and verifies benefit claims.
Pension Credit Identified as Priority Area
During his committee testimony, Mr Schofield explicitly identified Pension Credit as the next benefit that will undergo increased scrutiny. He explained that this decision follows the department's focused efforts on Universal Credit, which has shown measurable improvements in reducing losses through fraud and error.
"We can now turn our attention to Pension Credit as well," Mr Schofield told MPs, highlighting the strategic progression of the department's anti-fraud initiatives.
Specific Fraud Concerns in Pension Credit
The DWP chief detailed the particular areas of concern within the Pension Credit system that have prompted this enhanced monitoring approach. He identified two primary categories of fraud and error that the department aims to address:
- Capital-related fraud: Where claimants may not accurately report their financial assets and savings
- Abroad fraud: Where individuals claim benefits while residing outside the UK for longer periods than eligibility rules permit
Multi-Faceted Approach to Verification
Mr Schofield outlined several methods the DWP will employ to tackle these issues within the Pension Credit system, building upon strategies already implemented for Universal Credit:
- Encouraging voluntary reporting of changed circumstances that affect benefit entitlement
- Utilising enhanced data access, including information from HM Revenue and Customs
- Implementing eligibility verification measures to detect overseas transactions
- Conducting targeted case reviews of existing Pension Credit claims
Building on Universal Credit Success
The decision to extend bank account checks to Pension Credit follows what the DWP describes as successful outcomes from similar measures applied to Universal Credit. Mr Schofield explained that Universal Credit represented "the biggest area of loss" initially, making it the logical starting point for the department's enhanced fraud prevention efforts.
"We've started with Universal Credit because it was the biggest area of loss we've seen big improvements," he stated, indicating that the proven effectiveness of these measures has paved the way for their extension to other benefits.
Cross-Benefit Learning and Application
Mr Schofield emphasised that many of the techniques developed for Universal Credit fraud prevention are directly applicable to Pension Credit. This includes methods for detecting earnings-related fraud through established data channels previously used for Carer's Allowance verification.
The department's approach represents a systematic expansion of monitoring capabilities across the welfare system, with Pension Credit now clearly identified as the next priority in the government's ongoing efforts to ensure benefit payments reach only those legitimately entitled to them.
