The Department for Work and Pensions (DWP) announced today that the government will introduce a new Fraud, Error and Debt Bill during the current parliamentary session. This legislation aims to strengthen the DWP’s ability to tackle fraud within the social security system.
The bill, unveiled today, is projected to save £1.6 billion over the next five years by granting the DWP enhanced powers to detect and prevent fraudulent activities, recover misappropriated funds, and protect vulnerable individuals from accumulating debt.
According to the DWP, fraud and error within the social security system currently cost taxpayers nearly £10 billion annually. Since the pandemic, an estimated £35 billion has been diverted from those in genuine need.
Key Provisions of the Bill Include:
- Expanded investigative powers, including search and seizure capabilities, to combat sophisticated criminal networks defrauding the system.
- Improved mechanisms to recover debts from individuals capable of repayment but who have avoided doing so.
- Authority to require banks and financial institutions to share data that may indicate potential benefit overpayments.
The legislation also includes safeguards to protect vulnerable beneficiaries. DWP staff will receive extensive training on the proper use of these new powers, and additional oversight and reporting mechanisms will be introduced. The department emphasized that it will not have direct access to individuals’ bank accounts and will not share personal information with third parties.
A Code of Practice, to be developed in consultation with stakeholders during the bill’s passage, will provide further assurance on the responsible use of these new powers.
The government asserts that this bill fulfills a manifesto commitment to safeguard taxpayers’ money, and eliminate fraud, error, and waste in public services, particularly within the social security system.
Further details on the bill’s scope will be provided upon its formal introduction to Parliament.
