DWP warns bank account checks will begin and explains how they'll work

New laws will give the DWP more powers to catch fraudsters faster and prevent customers from getting into debt sooner.

The Department for Work and Pensions is rolling out a Fraud, Error and Debt Bill which has been "brought forward to tackle fraud in social security system". New laws will give the DWP more powers to catch fraudsters faster and prevent customers from getting into debt sooner.

The Bill is set to include measures to protect vulnerable customers and ensure support goes to those who need it most, the new Labour Party government has said. New rules let the DWP "better investigate suspected fraud and new powers of search and seizure".

It will also "allow DWP to recover debts from individuals who can pay money back but have avoided doing so, bringing greater fairness to debt recoveries" and "require banks and financial institutions to share data that may show indications of potential benefit overpayments."

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The Bill will also include safeguarding measures to protect vulnerable customers. Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms, to monitor these new powers. DWP will not have access to people’s bank accounts and will not share their personal information with third parties.

A government press release goes on to say: "We will also bring forward a Code of Practice which will be consulted on during the passage of the Bill to provide further assurance on the safe use of the powers. This legislation delivers on the government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the government’s commitment to not tolerate fraud, error or waste anywhere in public services, including the social security system.

"Further details on the scope of the legislation will be set out when the Bill is introduced." The Bill is expected to save £1.6 billion over the next five years and will extend and modernise DWP’s powers. Fraud and error in the social security system currently costs the taxpayer almost £10 billion a year.