DWP issues update over who will have bank accounts checked 'as last resort'
The Department for Work and Pensions has issued a big update over checking the bank accounts of those who claim benefits. The DWP has been handed power by the new Labour Party government to seize cash from benefits cheats' bank accounts.
The new powers - whi h have sparked fury - will mean the DWP can recover taxpayers’ money faster from those who have the means but refuse to pay back. The DWP now has the ability to directly recover debt from bank accounts of those not on benefits or PAYE earnings through regular or lump sum deductions, under the proposals, as a "last resort".
Labour Party government Secretary of State for Work and Pensions, Liz Kendall, said: "This government will not tolerate fraud and waste in the welfare system as we make it fit for the 21 st century as part of our Plan for Change. The public expects this of us, and we are delivering for them.
READ MORE: Warning issued for cat owners in England buying Felix food pouches
READ MORE: Warning issued to anyone who has used ATM for cash withdrawal in past 12 months
READ MORE Met Office warns two-word weather phenomenon will hit UK from Sunday
"People who seek to cheat the system should know – our new powers will help us to catch you out and make sure you are held accountable. We will also introduce new powers to minimise overpayments to benefit claimants so that hard working families up and down the country know their money is being protected.”
The powers will require banks and financial institutions to examine their own data sets to highlight where someone may not be eligible for the benefits they are being paid. This will help DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity.
Banks will only share very minimal information, and this will only be used by DWP to support further inquiry, if needed, into a potential overpayment. It will allow DWP to recover debts from individuals who can pay money back but have avoided doing so, bringing greater fairness to debt recoveries, the DWP hopes.
It will also make changes to the penalties system, so that no one found to have committed fraud against the social security system avoids punishment, bringing increased fairness for claimants who do the right thing.