DWP to be given powers to take money from bank accounts

The Department for Work and Pensions (DWP) is set to be given new powers to withdraw funds directly from bank accounts or payslips in an effort to combat benefit fraud. Under the current rules, benefit fraud investigators need a court order to make such deductions, but provisions being drawn up in the Fraud, Error and Debt Bill (FED) are set to overhaul this process. The DWP is also expected to be given the ability to access information regarding suspected fraudsters from a broader range of private companies, not just banks and employers.

Liz Kendall, Secretary of State for Work and Pensions, stressed the need to modernise the DWP's powers, highlighting that they have remained unchanged for 20 years. Kendall has also expressed frustration at the slow pace of investigations, which still rely on outdated methods such as sending letters to collect evidence on potential fraudsters. 

While the financial impact of benefit fraud has grown to a record level of £7.3 billion last year, the proposed measures are projected to save taxpayers £1.6 billion over the next five years as part of a larger crackdown on benefit fraud.

In a statement, Silkie Carlo, director of the digital rights group Big Brother Watch (BBW), said: "This blank cheque to force private companies to snoop and report on the country's poorest citizens to the state is intrusive, excessive and will create a culture of fear among millions of people claiming benefits.

"For a Labour government to introduce tough investigatory powers more typical of a counter-terror context to Britain's welfare system is an alarming attack on privacy and yet another assault on the poor."