The Department for Work and Pensions (DWP) is moving towards increased scrutiny of four benefits in a bid to clamp down on fraud, as per experts’ warnings. Under the current Labour Party-led government, the DWP is on track to acquire additional authority to examine bank accounts. Steven Kibbel, a financial planner at Gold IRA Companies, shared with BirminghamLive, “I believe these enhanced powers to scrutinise claimants’ bank accounts will mainly target means-tested benefits.”
He highlighted that Universal Credit is likely to be a central focus due to its widespread uptake and a savings threshold of £16,000. Other benefits that might come under the radar for these checks include Jobseeker’s Allowance, Employment and Support Allowance, and Housing Benefit. Concerns about privacy have been voiced by financial advisor Yiannis Zourmpanos from Bountii, who remarked, “The concept of the Government peering into your bank account feels intrusive.”
Zourmpanos highlighted that while there are ethical dilemmas with this level of oversight, the DWP is aiming to ensure the proper allocation of public funds, citing the need for a tougher approach due to the prevalence of fraud. He cautioned that legitimate claimants, often in financially vulnerable positions, could inadvertently face scrutiny if their circumstances appear dubious on paper. Zourmpanos stressed the importance of maintaining accurate records of income, savings, and any changes in status, while promptly reporting alterations to the DWP.
He advised individuals to seek guidance if uncertain about any aspects of their claims, underscoring the availability of welfare rights organisations and advisors to offer support in understanding entitlements and responsibilities. Additionally, he recommended awareness of regulations regarding overseas travel while claiming benefits. Zourmpanos highlighted the obligation to be cautious, as certain financial patterns like unexpected large deposits or inconsistent transfers could trigger reports from banks, potentially leading to investigations even for legitimate transactions, necessitating time and effort to resolve.
This move towards heightened scrutiny underscores the government’s commitment to ensuring the integrity of the welfare system, with a specific emphasis on weeding out fraudulent activities. As the DWP gears up to exercise these new powers, claimants are advised to navigate prudently, ensuring compliance with reporting requirements and seeking guidance whenever in doubt to safeguard their benefit claims and financial standing.