DWP update ahead of bank account checks to 'recover money from claimants'

The current level of fraud is said to be costing the taxpayer almost £10 billion a year

A new update has been issued ahead of a Department for Work and Pensions (DWP) plan to crack down on benefit fraud. The Government department has signed two new contracts reportedly worth about £7million to 'maintain and modernise' one of its 'key' platforms to tackle fraud and error.

According to a report by Public Technology, the deals cover 'service maintenance and change' for the DWP's Data Service Platform (DSP). The contract with R+ Analytics came into effect this week.

It will see the firm 'support and maintain the applications and develop ongoing changes and modernisation transformation on the platform'. The contract also says the firm will 'lead and support delivery activities across DSP and continuous improvement'.

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This includes 'identifying setbacks and shortcomings', Mirror reports. This initial contract will last one year but could be extended for a further 12 months.

A contract with bedigital covers the delivery of software development support. Labour announced its plans to crack down on benefit fraud at its party conference last month.

According to the Government, the new bill is expected to save the taxpayer £1.6billion over the next five years. Labour said the current level of fraud within the benefits system was costing the taxpayer almost £10 billion a year.

Since the pandemic, a total of £35billion of taxpayers’ money has been lost. Under the new plans, the Government said the DWP would be given new powers to 'better investigate' suspected fraud, along side new powers of search and seizure.

This would allow the DWP to take 'greater control investigations' into criminal gangs. Alongside this, the DWP will also be given powers to recover debts from individuals who can pay money back but have 'avoided doing so'.

Banks and other financial institutions will be required to share account data with the DWP. The Government said the DWP would not have access to bank accounts and the data it receives will not be shared with third parties.

The government will be also bring forward a new 'Code of Practice' on the safe use of the powers. The rules within this Code have not been confirmed as of yet and will be consulted on during the passage of the Bill.