DWP clarifies which benefit claimants' bank data it may look at

20 February 2024 , 21:09

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Some claimants' bank data will be checked (Image: Getty Images/iStockphoto)

The Department for Work and Pensions (DWP) has clarified which bank accounts it may request data from in a huge crackdown against benefit fraud.

New rules will mean the government department can request information from third parties, such as banks, that could show signals of benefit fraud and error. Over the coming tax year, the DWP will be measuring the following benefits for fraud and error: Universal Credit, Housing Benefit (pension age cases) and Pension Credit, as well as State Pension, Personal Independence Payment (PIP) and Disability Living Allowance (DLA).

Benefit fraud can take many forms, such as pretending to be ill or injured to claim unemployment or disability benefits, not reporting income from a job or business, or living with someone who helps pay the bills without telling the authorities.

The DWP plans to publish its fraud and error report for the 2023/2024 financial year in May of this year.

Officials are said to be looking at claims where all three of the following conditions apply: the conditions for receipt of benefit, or the rate of benefit in payment, are not being met, the claimant can reasonably be expected to be aware of the effect on their entitlement or benefit payment stops or reduces as a result of the review - so it is likely people with these claims could be investigated.

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The DWP also checks for errors made by its own staff, local councils or HM Revenue and Customs (HMRC). This could be because they didn't act quickly enough, made a mistake when working out how much benefit to pay, or processed information incorrectly.

Kate Lally