New DWP powers to ‘monitor bank accounts’ explained in full | Personal Finance | Finance
MPs have clarified misunderstandings following fears that new legislation would grant the DWP invasive powers to scrutinise claimant bank accounts.
Earlier in the year, wide speculation was triggered by the introduction of the Fraud, Error and Debt Bill, aimed at preventing benefit fraud. The contentious Eligibility Verification Measure in the bill stirred up anxiety as it appeared to allow the Department for Work and Pensions direct access into bank accounts of benefit claimants.
Dispelling these worries, Labour MP Andrew Western provided a thorough explanation in his reply to Reform UK MP James McMurdock’s enquiry.
Reassuring constituents, the representative for Stretford and Urmston declared: “The Eligibility Verification Measure in the proposed Fraud, Error and Debt Bill will not give DWP access to any bank accounts, nor any information on how claimants spend their money. It will require banks and financial institutions to share limited information with the DWP to help verify benefit eligibility by flagging possible conflicts with eligibility rules.”
The MP elaborated on the situation, using Universal Credit as an example where claimants can have up to £16,000 in capital before it impacts their payments.
Under the new measures, banks could be called upon by the DWP to investigate and ensure that recipients are receiving the correct amount, thus preventing debt and fraud.
However, the DWP won’t directly scrutinise individual accounts. More specifics about the extent of bank investigations will be revealed when the Bill is introduced in Parliament, including additional safeguards, reporting mechanisms, and independent oversight procedures.
The MP assured: “No benefit entitlement decision will be made solely because of the data obtained under EVM and a final decision on benefit entitlement will always involve a human agent. If a claimant wishes to challenge or appeal a benefit decision, they can do so following DWP‘s appeals processes.”
In another reply to the Reform MP, Mr Western also confirmed that the state pension “will be excluded from the scope of this measure given its near universality and minimal eligibility requirements”.
Compliance with UK GDPR and the 2018 Data Protection Act is mandatory for the processing of data under the new measures, which will be monitored by the Information Commissioner’s Office.
