DWP will be able to 'directly access bank accounts' to recoup unpaid debt says Rachel Reeves in Budget

Chancellor of the Exchequer Rachel Reeves and Chief Secretary to the Treasury Darren Jones prepare to leave 11 Downing Street, London, before delivering the Budget in the Houses of Parliament
-Credit: (Image: Stefan Rousseau/PA Wire)


The Chancellor of the Exchequer has announced major reforms to the DWP in her Budget. Rachel Reeves told the House of Commons this afternoon (Wednesday, October 30) that she aims to tackle fraudsters taking advantage of welfare payments and benefits, including granting officials new powers to directly access bank accounts to recoup debt.

Ms Reeves told MPs: "We inherited the last government's plans to reform the work capability assessment. We will deliver those savings as part of our fundamental reforms to the heath and disabilities benefit system." She added: "I can today announce a crackdown on fraud in our welfare system. often the work of criminal gangs.

"We will expand the DWP's counter fraud teams, using innovative new methods to prevent illegal acitivit, and provide new legal powers to crack down on fraudsters, including direct access to bank accounts to recover debt. This package saves £4.3 billion a year by the end of the forecast."

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The Department for Work & Pensions sign outside Caxton House in Whitehall
The DWP is getting new powers -Credit:Andrew Aitchison / In pictures via Getty Images

In additon, Ms Reeves announced that the Government would shortly publish its 'Get Britain Working' white paper - a document presented before proposed legislation becomes a Bill. This will 'tackle the root causes of inactivity' with 'an integrated approach across health, education and welfare'.

Further £240 million will be provided for 16 'trailblazer projects', targetted at those who are 'economically inactive' and 'most at risk of being out of education, employment or training, to 'get people into work and reduce the benefits bill'.

The Chancellor then said: "Before a government can consider any change to a tax rate or threshold, it must ensure that people pay what they already owe. So we will invest to modernise HMRC systems using the very best technology, and recruit HMRC compliance and debt staff. We will clamp down on those umbrella companies who exploit workers, increase the interest rate on unpaid tax debt to ensure that people pay on time, and go after the promoters of tax avoidance schemes."

A previous plan announced by the former Conservative government to 'catch benefit cheats' said the proposal 'did not give DWP access to anyone’s bank account or see how claimants are spending their money'.

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