The Government has issued an update on how it will be stepping up its efforts to tackle benefit fraud.
New powers will be coming in as part of an upcoming piece of legislation, allowing officials to request the details of people’s bank accounts in cases of suspected fraud, prompting concerns that people could be wrongly targeted.
The renewed efforts to stop people illegitimately receiving benefits was mentioned during the Autumn Budget, with Chancellor Rachel Reeves saying they hope to recover £4.5billion in fraudulent payments.
Conservative MP Helen Whately asked the Government about what extra staff they would be taking on as part of the clampdown on benefit fraud.
Work and pensions minister, Andrew Western, said there would be funding for 3,000 new positions in the DWP’s Counter Fraud, Compliance and Debt (CFCD) division, from April 2025.
He said this is on top of the CFCD reaching growing its worker base to the equivalent of 9,923 full-time roles, for the 2024/2025 financial year.
He explained: “Training resources and learning journeys for all new starters are robust and clearly defined. Most of our new starters will also align and be assured against Government Counter Fraud Profession (GCFP) cross-Government counter-fraud standards.”
Information on the Government website states that the GCFP is concerned with efforts to tackle fraud, bribery and corruption activity in Government.
The webpage states: “It brings together public servants who work to find and tackle fraud, bribery, corruption and wider economic crime across Government.”
Several financial experts have voiced concerns about the bank account checks targeting innocent people, with one analyst fearing some 350,000 Universal Credit could be wrongly targeted.
Sebrina McCullough, director of external relations at free money advice service Money Wellness, said it remains “unclear” what safeguards will be in place to prevent misuse of the powers, as the full details of the legislation have yet to be published.
The new measures will come in as part of the Fraud, Error and Debt Bill. Ms McCullough further warned: “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.”
Regulation expert, Yair Bennett, founder of BOI Agent, also called for “robust appeal systems” so people being investigated can dispute being accused.
Looking at ways to improve the benefits system to avoid cases of wrongful payments, he said: “Simplifying benefit applications, making eligibility requirements clearer, and training claimants about compliance may reduce fraud.”
The expert also put forward the idea of incorporating data from HRMC about a person’s income and employment, in the benefits system, to help locate discrepancies early on.
