DWP officials will be able to request bank account details of claimants
New DWP eligibility checks could soon be expanded to PIP (Personal Independence Payment). A bill is going through Parliament which would allow investigators to request bank account details linked to benefit claimants to check they are eligible for receive their cash. The measures will initially be used to check the eligibility of those on Universal Credit, on Pension Credit, and on Employment and Support Allowance (ESA).
But the legislation outlines that this could be extended to other benefits. Chloe Coleman, CEO of employment verification group Vouchsafe, said: “In theory, it could be applied to any benefit, but Universal Credit has the highest number of applications alongside ESA, so it makes sense for them to start there. But identity fraud does happen.”
She also said the measures could be expanded to PIP. The benefit provides payments to help people who live with a long-term health condition or disability. Ms Coleman said: “It could also be used for PIP; instead of having to go through the medical assessment, your medical information could be pulled to justify your claim. But that depends on any arrangement that is made with the NHS. The same argument could be made for Child Benefit.”
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The security expert said other financial information could be automatically shared with the DWP to make sure you are eligible for your benefits.
Ms Coleman said: “In terms of financial situation, there are three main things that are considered when you’re applying for any benefit: income, debt, and savings.
“Open banking, the checking of HMRC data, or even of a credit file could mean that these things are sent to DWP almost automatically, meaning that when you claim, you don’t have to find all your personal records and type everything in.”
The draft bill has been approved by the House of Commons and is currently going through the House of Lords. The new legislation also provides new powers for investigators to directly take funds from a person’s bank account where they owe an amount and are refusing to pay up.
Anyone being pursued for a debt to the DWP will be sent a notice giving them at least 28 days to dispute the decision and officials will also request at least three months’ worth of bank statements for the account, to make sure the person has the funds available to settle the debt.
DWP staff need to be ‘well trained’
Asked if there is a danger the powers could be misused, Ms Coleman said: “There is a difference between powers being misused and mistakes being made. It’s always a slight risk, but if DWP are using open banking data instead of payslips and employers reporting to HMRC, then ultimately, it could be way more accurate.
“In the bill, it does say that a person will get notice, so it’s not just a case that money will be taken from a bank account without warning, but DWP will need to be really sure before they use any of these enforcements.
“They also need to make sure that the civil servants doing the investigations and enforcements are incredibly well trained, otherwise there will be mistakes.”
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In announcing the bill in January 2025, former secretary of state for work and pensions Liz Kendall, said: “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money.
“This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.
“People need to have confidence the Government is opening all available doors to tackle fraud and eliminate waste, as we continue the most ambitious programme for government in a generation – with a laser-like focus on outcomes which will make the biggest difference to their lives as part of our Plan for Change.”
