On Tuesday, 24 September 2024, the Department for Works & Pensions (DWP) announced that the UK government would introduce legislation in this parliamentary session to address benefit fraud. The Fraud, Error and Debt Bill (FED) will be brought forward to tackle fraud in the social security system, giving DWP more powers to catch fraudsters and prevent individuals from getting into debt while protecting the most vulnerable to ensure support goes to those who need it most.
The announcement came as Prime Minister Sir Kier Starmer promised to "leave no stone unturned" as the government works to "rebuild our public services" during his speech at the Labour Party conference.
The FED Bill aims to save £1.6 billion over the next five years, modernise DWP's powers, and recover lost money. The government claims fraud and overpayments have cost the UK almost £10 billion a year in taxpayers' money since the pandemic, a total of £35 billion.
As the nature of fraud becomes more sophisticated, the government claims that it needs these new powers to keep pace. The legislation will give DWP new powers to investigate suspected fraud, including "search and seizure" powers to take control of investigations into criminal gangs. The Bill will enable DWP to recover debts from individuals who can pay money back but have failed to do so. In addition, the Bill will require banks and financial institutions to share data concerning potential benefit overpayments.
However, the government also clarified that "DWP will not have access to people's bank accounts and will not share their personal information with third parties." Given the strength of opposition to powers contained in the failed Data Protection and Digital Information (DPDI) Bill, digital rights groups, such as Big Brother Watch (BBW) and Open Rights Group, will rally to hold the government to its word.
In comments given to The Guardian reporting on the news, Silkie Carlo, Director at BBW, said: "Everyone wants fraud to be dealt with, and the government already has strong powers to investigate the bank statements of suspects. But to force banks to constantly spy on benefits recipients without suspicion means that not only millions of disabled people, pensioners and carers will be actively spied on but the whole population's bank accounts are likely to be monitored for no good reason. A financial snooper's charter targeted to automate suspicion of our country's poorest is intrusive, unjustified and risks Horizon-style injustice on a mass scale."
Other safeguarding measures contained in the Bill include staff training on appropriate uses of the new powers, new oversight and reporting mechanisms, along with a consultation for a Code of Practice during the passage of the Bill.
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