DWP assertion outlines the one profit ‘secure’ from checking account checks

The Department for Work and Pensions has revealed that one benefit will be safe from bank account inspections. The DWP confirmed it is being granted new powers by the new Labour Party government, allowing it to deduct money directly from payslips and accounts.

However, DWP minister Liz Kendall assured that state pensioners are protected. Benefit fraud investigators will soon have the power to recover overclaimed debts directly from individuals’ bank accounts, thanks to new powers from the Labour government.

Officials have previously attributed an ‘increasing propensity’ for dishonesty across British society as a reason for the continued rise in scams since Covid. Ms Kendall pledged to modernise her department’s 20 year old powers, describing their current investigatory capabilities as ‘absurd’.

The DWP will receive new powers to directly extract money from the pockets of benefit fraudsters, as the government promises to clamp down on welfare scams. It was disclosed that DWP officials expect a 5 per cent increase in fraud each year.

During 2023-24, £9.7 billion of taxpayers’ money was overpaid in benefits due to fraud and error, accounting for 3.7 per cent of total benefit expenditure. This compares to £8.3 billion and 3.6 per cent in 2022-23, as the rate of benefit overpayments continues to remain significantly above pre-Covid levels, reports Yorkshire Live.

In a letter to the Telegraph, Ms Kendall said: “We’re in an absurd situation where DWP’s powers have not been updated for 20 years, meaning fraudsters have new ways of taking public money, and we need to keep pace with them.”

She further told the paper, “My team are still, in 2024, sending letters to gather evidence for those suspected of welfare fraud, slowing them down to snail’s pace when they could be shutting down serious fraud cases.”