DWP positive aspects new powers to examine financial institution accounts and impose £300 fines in fraud crackdown

The Department for Work and Pensions (DWP) is set to be granted new powers to tackle benefit fraud, with the ability to check private bank accounts and fine claimants

The Department for Work and Pensions (DWP) is cracking down on benefit cheats with new anti-fraud measures, including the power to slap claimants with £300 fines and confiscate assets.

In a sweeping move to tackle benefit fraud, the DWP will be peeking into bank accounts, grabbing funds, and sniffing out scams in the system.

Cabinet under secretary Georgia Gould told MPs: “2021-22, detected fraud and error outside of tax and welfare was £823 million, of which only £190 million-23 percent-was recovered. Alex Rothwell, from the NHS Counter Fraud Authority, told us in his evidence that the Department recovered only 12 percent of fraud and error. There is a long way to go in this space, which is why the powers are so important.”

She also highlighted the struggle to claw back fraudulent funds, saying: “We know that recovery of fraud-related debt can be challenging. Debt recovery powers are limited to a small number of organisations and are therefore not available across the public sector. The Public Accounts Committee, Home Affairs Committee and National Audit Office have all strongly challenged the Government to do more across the public sector to take action on fraud loss.”

Gould added that the Bill would boost the Government’s muscle to recoup cash swindled from the public purse: “As part of the Bill, we are bringing debt recovery powers into the PSFA to enable the Government to better recover fraud debt outside of tax and welfare. We heard from Alex Rothwell that these powers will be incredibly helpful for us to recover more money.”

Gould confirmed the upcoming implementation of “civil penalties through deduction orders of £300” and stated: “We have consulted widely with a range of fraud and debt stakeholders, including public bodies, academics and non-public sector groups. Banks, charities and civil liberty groups have been engaged so that we can incorporate lessons learnt from the experience of debt recovery processes in Government.”

She also explained: “Importantly, the powers will only be used once efforts to engage and secure voluntary repayment have been unsuccessful. The only people and companies who will face the powers are those who have the means to repay, but who refuse to do so.”

Detailing the next steps for those affected, Gould revealed that individuals will have options such as making representations, applying to vary orders, requesting an internal review, and ultimately appealing to the tribunal, as reported by Birmingham Live. Trained, authorised officers will exercise these powers, ensuring independent oversight throughout the process.

In her closing remarks Gould stressed that the measures outlined in the Bill are designed to achieve a fair balance between efficient recovery of public funds and fairness, with robust protections for vulnerable individuals firmly established.

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