The DWP says claimants will have the right to appeal against decisions that have been based on data from bank account checks (Image: Getty)

DWP explains Universal Credit and PIP claimants' rights over bank account checks

by · Birmingham Live

The Department for Work and Pensions has explained what rights claimants will have when their bank accounts are monitored under new powers to clamp down on fraud. New legislation will mean people on benefits including Universal Credit, Employment and Support Allowance (ESA) and Personal Independence Payment (PIP) will find their accounts checked to make sure they are complying with the rules of their claim.

Government ministers say staff will look for evidence that savings are too high to be entitled to benefits and for signs that a person is staying overseas for longer than is allowed or even living abroad while claiming from the UK welfare system. Universal Credit has a capital limit of £16,000 before entitlement stops, and travelling outside Great Britain is allowed for one month at a time as long as officials are notified beforehand.

PIP itself is not means-tested and has no limits on income or savings but many recipients also receive Universal Credit or ESA and would therefore come under the capital limits of those benefits. Only the State Pension will be exempt from the new bank checks, the DWP said.

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Andrew Western, Parliamentary Under-Secretary of State at the DWP, explained the reasons for the new measures and what rights claimants have in reply to a question from Reform UK MP James McMurdock (South Basildon and East Thurrock). Mr Western, Labour's MP for Stretford and Urmston, said: "Fraud and error in the social security system currently costs the taxpayer almost £10 billion a year and, since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled. We are determined to reduce those levels.

"As set out by the National Audit Office, access to data is key to prevention and detection of incorrect payments. The Eligibility Verification Measure (EVM) in the proposed Fraud, Error and Debt Bill will not give DWP access to any bank accounts, nor any information on how claimants spend their money.

"It will require banks and financial institutions to share limited information with the DWP to help verify benefit eligibility by flagging possible conflicts with eligibility rules – for example the £16,000 capital limit in Universal Credit. The information gathered will help DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity.

"The legislation will set out key safeguards, including reporting mechanisms and independent oversight. No benefit entitlement decision will be made solely because of the data obtained under EVM and a final decision on benefit entitlement will always involve a human agent. If a claimant wishes to challenge or appeal a benefit decision, they can do so following DWP's appeals processes. Further details will be set out when the Bill is introduced to Parliament."

If someone disagrees with a decision about their benefit claim, they must first ask for it to be looked at again. This is called a mandatory reconsideration and usually has to be requested within a month but can be submitted later than this if you have good reason for the delay. If you are still not happy with the outcome, the next step is to go to an independent social security tribunal where a judge will hear both sides of the argument and issue a ruling.

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