In a bid to tackle post-COVID fraud and save an estimated £500 million over the first five years, the Department for Work and Pensions (DWP) is considering a reform that could see bank accounts of benefit recipients, including those on Universal Credit, checked monthly to ensure the accuracy of their savings. This move aims to crack down on potential benefit fraud and promote fairness for taxpayers.
Under the current system, the DWP must individually request details of a benefit claimant’s bank account if there is suspicion of fraudulent activity. However, the proposed reform would require banks to conduct monthly or even weekly data checks to identify any information that may indicate a “risk” of fraud, which would then be reported to the government.
A government source emphasized the importance of preventing fraud, stating, “Every pound stolen by fraudsters could be spent on our public services or on those most in need. [The DWP] sees it as profoundly wrong that benefit cheats aren’t playing by the rules and is determined to bring fairness for the taxpayer.”
To qualify for Universal Credit, individuals must meet specific eligibility criteria, including having £16,000 or less in money, savings, and investments. If a claimant’s bank account balance suggests otherwise, it could raise a red flag and prompt a report to the DWP. Additionally, bank accounts with frequent international money transfers may be seen as a potential indicator of fraud.
A DWP spokesperson commented on the reform, saying, “We are already cracking down on those who try to exploit the welfare system in a push to save the taxpayer £1.3 billion in the next year. We are ramping up our plans to root out fraud through our Fighting Fraud plan, which will bolster the counter-fraud frontline significantly by deploying trained specialists to review millions of Universal Credit claims, among other measures.”
The proposed bank account checks, if implemented, could mark a significant change in how the DWP monitors benefit claimants and may play a pivotal role in safeguarding public funds and ensuring that benefits are distributed fairly to those who genuinely need them.
Under the current system, the DWP must individually request details of a benefit claimant’s bank account if there is suspicion of fraudulent activity. However, the proposed reform would require banks to conduct monthly or even weekly data checks to identify any information that may indicate a “risk” of fraud, which would then be reported to the government.
A government source emphasized the importance of preventing fraud, stating, “Every pound stolen by fraudsters could be spent on our public services or on those most in need. [The DWP] sees it as profoundly wrong that benefit cheats aren’t playing by the rules and is determined to bring fairness for the taxpayer.”
To qualify for Universal Credit, individuals must meet specific eligibility criteria, including having £16,000 or less in money, savings, and investments. If a claimant’s bank account balance suggests otherwise, it could raise a red flag and prompt a report to the DWP. Additionally, bank accounts with frequent international money transfers may be seen as a potential indicator of fraud.
A DWP spokesperson commented on the reform, saying, “We are already cracking down on those who try to exploit the welfare system in a push to save the taxpayer £1.3 billion in the next year. We are ramping up our plans to root out fraud through our Fighting Fraud plan, which will bolster the counter-fraud frontline significantly by deploying trained specialists to review millions of Universal Credit claims, among other measures.”
The proposed bank account checks, if implemented, could mark a significant change in how the DWP monitors benefit claimants and may play a pivotal role in safeguarding public funds and ensuring that benefits are distributed fairly to those who genuinely need them.
