Yahoo News DWP to get new powers to raid homes and make arrests under new Fraud Bill
The Department for Work and Pensions (DWP) is set to be granted new powers to combat benefit fraud, putting them on par with HM Revenue and Customs (HMRC), as confirmed by Prime Minister Rishi Sunak. Under the upcoming Fraud Bill, DWP investigators will have the authority to carry out raids, make arrests, seize goods, and impose civil penalties more widely.
These enhanced capabilities will complement those brought in via the Data Protection and Digital Information Bill, which permits the DWP to attain data from third parties, such as banks. Prime Minister Sunak disclosed these extra measures on Friday, underlining the importance of preventing fraudsters from exploiting the UK's characteristically compassionate nature.
Sunak firmly stated, "We cannot allow fraudsters to exploit the natural compassion and generosity of the British people."
Furthering his remarks, he added, "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.", reports Wales Online.
Sunak also underscored the importance of leveraging modern technology, such as Artificial Intelligence, to bolster the welfare system's integrity: "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."
"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 Prime Minister further 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."
The UK Government has billed this initiative as one of the most substantial reforms to benefit fraud legislation in over two decades, forecasting savings for taxpayers of £600 million by the fiscal year 2028/29.
Moreover, the Government's strategy is designed to shape a welfare system that is "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".
The current regulations allow the Department for Work and Pensions (DWP) to request individual banking transaction details when there is a reasonable suspicion of fraud. However, the proposed Data Protection and Digital Information Bill could grant the DWP new powers to access personal data of benefit claimants, requiring third parties like banks or building societies to conduct mass monitoring without any suspicion of fraudulent activity.
This proposal has sparked significant debate in Parliament since its announcement last year.
An online petition, initiated by Wendy Scott and supported by over 24,100 signatures, argues that "most benefit claimants are not fraudsters" and labels the proposed approach as "too aggressive an approach towards benefit claimants".
In response to the petition on February 5, the DWP stated: "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 defended a new measure aimed at preventing benefit fraud, stating: "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."
They further clarified misconceptions, saying: "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."
The DWP elaborated that the process involves third parties examining their own data to supply "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.
