DWP claimants who go abroad 'could be monitored' as new powers on horizon
The Public Authorities (Fraud, Error and Recovery) Bill is expected to be rolled out from 2026, as per government-issued fact sheets.
Figures from the Department for Work and Pensions indicates that the bill could lead to savings of £1.5 billion over the after five years, reports ChronicleLive.
The new legislation includes provisions like driving restrictions of up to two years for repeat offenders who fail to repay falsely claimed benefits, amplified powers for the DWP to reclaim money directly from fraudsters' bank accounts, and an Eligibility Verification mechanism.
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This Eligibility Verification Measure permits third-party entities, such as banks, to identify potentially fraudulent benefit claimants.
But it does not grant the DWP with direct access to individual bank accounts despite widespread concerns when the plans were initially announced.
It will not permit investigators to monitor the spending habits of benefit recipients.
Instead, it will merely allow banks to collaborate with department investigators in identifying individuals who have exceeded the eligibility criteria.
For example, if a Universal Credit recipient has savings exceeding the permitted threshold of £16,000.
This can happen unintentionally when legitimate claimants are unaware that a change in circumstances affects their benefits eligibility.
The new powers could prevent individuals from unknowingly accumulating debt with the Department for Work and Pensions (DWP) and discourage fraudsters from exploiting the welfare system.
The Factsheets also suggest that there will be mechanisms in place to ensure "appropriate, proportionate, and effective use of the powers" to protect legitimate claimants.
According to guidance on Gov.uk: "The Government will begin implementing the Bill measures from 2026.
"For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively.
"DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance."
The DWP will also have the ability to request data from additional third-party organisations, such as airlines, to verify if individuals are claiming benefits while abroad, which may contravene eligibility criteria.
The factsheet also details potential penalties for banks and other financial institutions that overshare information and other safeguards that will protect legitimate benefit claimants.
The new measures in the bill will also empower the Public Sector Fraud Authority to:
Utilise its expertise on behalf of other departments;
Enhance detection and prevention of incorrect payments through new information gathering and sharing powers;
Employ robust non-criminal sanctions and civil penalties as an alternative to criminal prosecution and to deter fraud;
Boost the government's ability to reclaim public money, through new debt recovery and enforcement powers;
Exercise new powers of entry, search and seizure to alleviate the pressures on the police in the most serious criminal investigations;
Better manage fraud in future emergencies building on lessons learned during COVID-19.
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