In a bid to crack down on benefit fraud, the Department for Work and Pensions (DWP) is set to introduce a measure that will allow investigators to take money directly from pay slips of fraudsters. This move is part of the Government’s Fraud, Error and Debt Bill, aimed at saving £1.6 billion over the next five years.
Currently, investigators have to obtain a court order before deducting funds from an individual’s wages or bank accounts. Work and Pensions Secretary Liz Kendall highlighted the need for modernisation, stating that it is “absurd” that these powers have not been updated in the last two decades. Kendall emphasised the importance of equipping investigators with the necessary tools to combat welfare fraud efficiently.
The forthcoming Bill will not only enable the deduction of funds from those who have overclaimed benefits but will also grant investigators the authority to gather information from private companies, broadening the scope beyond banks, utilities, and employers. However, the State Pension will not be subject to these measures, deemed disproportionate by Kendall.
Privacy campaigners have raised concerns about these new powers, describing them as “Orwellian” and a significant expansion of government authority that could infringe on the presumption of innocence. Despite these reservations, Kendall assured that there would be human oversight to monitor automated alerts flagging potential fraud, dispelling notions of government intrusion into individuals’ bank accounts.
Previous proposals with similar aims failed to pass the Lords due to the dissolution of Parliament before the General Election. The Government estimates that welfare fraud and errors cost the taxpayer £10 billion annually, prompting discussions of tax increases and spending cuts worth £40 billion to prevent a return to austerity. The anticipated savings from the proposed measures amount to an average of £320 million per year.
In conclusion, the new powers granted to benefit fraud investigators signal a significant effort by the DWP to combat fraudulent activities and safeguard taxpayer funds. While concerns about privacy and government overreach have been raised, the Government emphasises the importance of updating investigative tools to address fraud effectively.