DWP plans to check benefit claimants’ bank accounts in cases of suspected fraud risk targeting the wrong people, an expert has cautioned.
The new powers are coming in as part of the Fraud, Error and Debt Bill, allowing investigators to request individuals’ financial information to check if they are wrongly claiming benefits or being overpaid.
Regulation expert and founder of BOI Agent, Yair Bennett, said: “Valid claimants may be incorrectly flagged. Misidentifications in automated systems or human inaccuracy in financial data interpretation can generate stress.”
He also warned that those who rely on benefits for their income could be “disproportionately affected” by cases of false positives.
His word of caution comes after another expert warned some 350,000 Universal Credit could be wrongly targeted, if previous trends continue.
Mr Bennett said that to avoid the danger of people being wrongfully suspected, there should be “robust appeal systems”, clear communication with claimants and good use of technology.
He explained: “Anomalies can be identified by machine learning models, but humans should constantly supervise them. A mixed strategy with technology and manual reviews can work.”
He said the powers could be put into use within 12 to 24 months although he said such changes can take time to implement, due to the legal foundations and technology that needs to be in place.
The compliance expert also said the DWP should prioritise preventing fraud over going after perpetrators. Mr Bennett commented: “Simplifying benefit applications, making eligibility requirements clearer, and training claimants about compliance may reduce fraud.”
He also suggested including real-time data from HRMC about a person’s income and employment, in the benefits system, to find discrepancies early on.
Rachel Reeves said during her Budget speech that the Government hopes to recover some £4.5billion in fraudulent benefits claims.
She said benefit fraud is often carried out by criminal gangs. The new powers will allow officials to carry out property raids and seize assets in cases of suspected organised crime.
Another critic of the new measures is Sebrina McCullough, director of external relations at free money advice service Money Wellness.
She warned: “Without full details of the bill, it is unclear what controls and oversight will be in place to prevent misuse or misapplication of these powers.”
She also pointed to the risk that claimants could be wrongly targeted: “These measures may inadvertently harm vulnerable individuals more than they deter large-scale fraud.
“Safeguards must include clear oversight to ensure transparency in how data is used. As well as proportionality in targeting suspected fraud and a robust appeal process to protect individuals from being wrongly accused.”
