MPs warn DWP they 'cannot condone' plans to snoop on bank accounts

The Department for Work and Pensions has been warned it risks a repeat of the Post Office and Horizon scandal with a plan to snoop on claimants' bank accounts. MPs have warned the DWP about its plans to snoop on bank accounts amid the Cost of Living crisis.

Conservative MPs Marcus Fysh and Charles Walker were among those who signed the letter, which was sent to work and pensions secretary Mel Stride and science, innovation and technology secretary Michelle Donelan.

The letter said: “While we are sure this is not your intention, the broad and far reaching nature of these powers would be highly intrusive. Issuing an account information notice would require banks to sift through tens of millions of bank accounts in order to identify people in the welfare system, around 40% of the population, in pursuit of indicators of fraud or error.

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“Searching for such signals without reasonable grounds for suspicion would reverse the well established presumption of innocence. Indeed, anyone in receipt of welfare payments would automatically be subject to intrusive financial scrutiny solely due to their benefit status.

"There is a real risk that such efforts to fight fraud will come very much at the expense of the poor, the disabled, and the elderly.” Baroness Kidron said: “I cannot work out for the life of me if these measures are intended to hurt, or if a focus on the shiny prospect of AI to sort out DWP problems, led incrementally to this place. Whichever, they are cruel to a degree and should worry us all.”

Labour MPs Ian Byrne, Richard Burgon, Rebecca Long-Bailey, Zarah Sultana, Debbie Abrahams, Ian Byrne, Kim Johnson, Bell Ribeiro-Addy, Sam Tarry and Mick Whitley have signed the letter. Liberal Democrat DWP spokesperson Wendy Chamberlain and Green Party welfare spokesperson Catherine Rowett also put their name to paper.

The letter added: “We note the tragic events of the Horizon scandal in which innocent people suffered wrongful prosecutions, financial ruin, and reputational damage following data used from faulty software in algorithmic systems. We cannot condone powers that risk replicating this disaster on a much broader scale with vulnerable people, many of whom live on the poverty line.”