Six new DWP powers under Labour - from bank account checks to raids

The DWP has been handed the powers to crackdown on fraud and benefit criminals.

The Department for Work and Pensions has been handed additional and extra powers by the new Labour Party government in a fraud crackdown. The DWP has been handed the powers to crackdown on fraud and benefit criminals.

Sir Keir Starmer pledged to "leave no stone unturned" as his government aims to "rebuild our public services" during his speech at the Labour Party conference today. DWP estimates show that 3.7% of benefit spending was overpaid last year, meaning the government now pays out over £9.5billion in benefits that people aren't entitled to.

The Bill is expected to save £1.6 billion over the next five years and will extend and modernise DWP’s powers to stop fraud in its tracks, recover money lost to fraud and protect vulnerable customers from racking up debt, according to the Labour government.

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Bank account checks

New laws will be introduced so that the Department for Work and Pensions (DWP) can ask banks to report fraudulent activity, for instance if a claimant has more than £16,000 in savings, or how much they earn. Anyone with more than this in the bank is not usually entitled to means-tested benefits like Universal Credit.

At the moment, the DWP can only request information from a claimant's bank account if there are "reasonable grounds to suspect fraud."

Earnings

The new proposals aim to remove the bureaucracy and will require banks to flag exactly when a claimant's earnings clash with the eligibility criteria of their benefits. The DWP won't be able to access bank accounts directly, and the exact information they can request is still to be confirmed.

Debts

The government department will also be handed more powers to recover debts from those who can afford to pay it back but have avoided doing so. The government said: "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." Starmer said: "If we want to maintain support for the welfare state, then we will legislate to stop the benefit fraud. Do everything we can to tackle worklessness."

Search and seizure

The Bill gives the DWP the power to "better investigate suspected fraud and new powers of search and seizure so DWP can take greater control investigations into criminal gangs defrauding the taxpayer."

Today, Starmer says he understands why people are unhappy about the winter fuel payments cut. But he says, with prices kept low, NHS waiting lists cut and the triple lock secured, “every pensioner will be better off with Labour”.

Staff

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," the government said.

Code of Practice

The DWP 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.