DWP says only one benefit is 'safe' from bank account checks

The Department for Work and Pensions (DWP) has revealed that one benefit will be exempt from bank account checks. The DWP, under the new Labour Party government, is set to gain new powers allowing it to deduct money directly from payslips and accounts.

However, state pensioners have been assured of their safety by DWP minister Liz Kendall. The new powers granted by the Labour government will enable benefit fraud investigators to recover overclaimed debts directly from individuals' bank accounts.

An 'increasing propensity' for dishonesty across British society has been cited as a reason for the continued rise in scams since Covid. Ms Kendall has committed to updating her department's 20 year old powers, describing their current investigatory capabilities as 'absurd'.

The DWP is set to receive new powers to directly extract money from the pockets of benefit fraudsters, as the government pledges to crack down on welfare scams. It has been disclosed that DWP officials are expecting a 5 per cent increase in fraud each year.

During 2023-24, £9.7 billion of taxpayers' money was overpaid in benefits due to fraud and error, accounting for 3.7 per cent of total benefit expenditure. This compares to £8.3 billion and 3.6 per cent in 2022-23, as the rate of benefit overpayments continues to remain significantly above pre-Covid levels, according to Birmingham Live, reports Leeds Live.

Ms Kendall expressed her concerns in a letter to the Telegraph, stating: "We're in an absurd situation where DWP's powers have not been updated for 20 years, meaning fraudsters have new ways of taking public money, and we need to keep pace with them."

She also highlighted the inefficiencies in the current system, telling the newspaper: "My team are still, in 2024, sending letters to gather evidence for those suspected of welfare fraud, slowing them down to snail's pace when they could be shutting down serious fraud cases."