The Government is soon to bring in powers for the DWP to check the bank accounts of benefit claimants to clamp down on suspected fraud.
Officials will be able to look at individual’s financial dealings to look for evidence of benefit overpayments.
The new measures are coming in as part of the Fraud, Error and Debt Bill. Ben Fleming, financial crime analyst at Ocean Finance, warned investigators could soon be exercising the new powers.
He said: “While there’s no confirmed start date for this DWP change, it’s likely these powers will begin to be used within the next year, as fraud prevention is usually a high priority for the Government.”
But he warned that for innocent claimants, the prospect of being wrongly targeted could cause “unnecessary anxiety”.
He explained: “Mistakes do happen, and the stress of being investigated can be overwhelming.” He called for proper safeguards to ensure the powers are used properly.
Mr Fleming said: “Clear communication is essential. If a claimant’s account is flagged, they should be notified promptly and provided with a straightforward explanation of the process.
“Any investigation should start with a conversation—not an assumption of guilt. Claimants should have the chance to explain any unusual transactions or discrepancies before further action is taken.”
Another concern he raised is that the DWP needs to make sure it is accurate in raising suspicions, warning that any automatic checks should be backed up by human review.
He also called for claimants to have support services available should they be investigated, to make sure they know their rights and have assistance in going through the process.
The powers will allow banks to check if a claimant’s savings are above the limits for means-tested benefits.
Officials may also look for evidence of foreign transactions meaning a person could be on a prolonged overseas trip which they are not allowed while claiming.
The DWP has stated that it will not have access to view inside a person’s bank account. The department will not share any personal details with third parties.
Looking at other measures to prevent benefit fraud, Mr Fleming said: “Improving ID checks or cross-referencing information with other systems could help identify false claims before payments are made.
“However, this should be done carefully so it doesn’t create extra barriers for people who genuinely need help.”
The expert also said officials should tackle some of the causes why people turning to fraudulent claiming benefits.
He explained: “In some cases, financial pressure might push people into making dishonest claims. Offering better access to budgeting advice and support for those struggling could reduce the temptation to bend the rules.”
