DWP to get powers to raid homes and make arrests under new Fraud Bill

The Department for Work and Pensions (DWP) is set to receive enhanced powers to enter homes and make arrests under the new Fraud Bill. The government aims to equip the DWP with enforcement capabilities similar to those of HM Revenue and Customs (HMRC).

Prime Minister Rishi Sunak has confirmed that the upcoming Fraud Bill will grant DWP officers the authority to execute search warrants, arrest individuals, confiscate property, and issue civil fines more extensively. These measures are in line with the powers being introduced through the Data Protection and Digital Information Bill, which will enable the DWP to access data from third parties, including financial institutions.

Prime Minister Rishi Sunak announced these additional powers on Friday, highlighting the importance of protecting the UK's welfare system from fraudulent activities. The PM stated: "We cannot allow fraudsters to exploit the natural compassion and generosity of the British people."

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He further commented: "We've already cracked down on thousands of people wrongly claiming Universal Credit, including those not reporting self-employed earnings or hiding capital and we'll save the taxpayer £600 million by legislating to access vital data from third parties like banks," the Daily Record reported.

In discussing the integrity of the welfare system, Sunak pointed to modern technology, including Artificial Intelligence: "We're using all the developments in modern technology, including Artificial Intelligence to crack down on exploitation in the welfare system that's taking advantage of the hardworking taxpayers who fund it." North Wales Live has launched a WhatsApp community group where you can get the latest stories delivered straight to your phone

"We're preparing a new Fraud Bill for the next Parliament which will align DWP with HMRC so we treat benefit fraud like tax fraud with new powers to make seizures and arrests."

The PM stated: "We'll also enable penalties to be applied to a wider set of fraudsters through a new civil penalty. Because when people see others in their community gaming the system that their taxes pay, it erodes support for the very principle of the welfare state."

This move has been described by the UK Government as one of the most significant revamps of benefit fraud legislation in over two decades, projecting taxpayer savings of £600 million by the fiscal year 2028/29.

Furthermore, the Government's plan is designed to mould a welfare system that provides critical support "fit for the future by providing vital support only to those who need it most, ensuring they are supported to live with dignity and independence, whilst making sure that everyone who can work is expected and supported to do so".

Regarding banking security and fraud prevention measures, current legislation allows the Department for Work and Pensions (DWP) to request specific bank transaction details when there's a reasonable suspicion of fraudulent activity.

Nevertheless, the introduction of the Data Protection and Digital Information Bill could broaden the DWP's powers as it would allow them to access personal claimant data of those on benefits. Banks or building societies would be required to conduct widespread monitoring, regardless of whether fraudulent activity is suspected a potentially controversial move which has already sparked heated debate in Parliament.

Apprehensive about the proposed new measures, over 24,100 people have signed an online petition started by Wendy Scott. The petition claims that this aggressive treatment towards benefit claimants is unfounded as "most benefit claimants are not fraudsters".

Following the reception of the petition on 5 February, the DWP responded: "We must modernise and strengthen DWPs legislative framework to give those fighting fraud the tools they need to stand up to future challenges and minimise the impact of genuine mistakes that can lead to debt."

"The third-party data gathering measure enables DWP to request data from third parties so we can more proactively detect fraud and error in the welfare system."

The Department for Work and Pensions (DWP) has elaborated on its approach to using data in the fight against benefit fraud, explaining: "data is a powerful tool to understand whether someone is entitled to benefit". They highlighted their use of "several data streams to help verify a person's claim or entitlement to benefit which has helped significantly reduce other types of fraud and error".

In defence of new measures to prevent benefit fraud, the DWP stated: "This measure will provide better access to data to establish whether someone is entitled to benefit, making it harder for fraudsters to steal from the taxpayer. The measure will also address error by ensuring claimants are in receipt of the correct amount of benefit that they are entitled, preventing people from inadvertently getting into debt."

Addressing concerns, the department clarified: "There are a number of misconceptions about this measure, namely, it does not grant DWP access to any bank accounts and it does not allow DWP to see how claimants are spending their money."

Further detailing the process, the DWP said that it involves third parties reviewing their own data and providing "relevant information" to the department that "may signal where claimants do not meet the eligibility criteria for the benefit they are receiving".

"DWP will only receive data on accounts matching criteria DWP prescribes, these will be linked to eligibility criteria for benefits that, if met, may require further consideration to ensure a claim is correct through our business-as-usual processes," the DWP clarified.

The full statement from the DWP is available on the petitions-parliament website.

If the petition named 'Do not introduce regular bank account checks for benefit claimants' garners 100,000 signatures, it could prompt the Petitions Committee to consider a debate in Parliament.

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