DWP explains which bank accounts it will 'prioritise' for fraud checks

14 December 2023 , 14:09

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The DWP has issued an update (Image: PA Wire/PA Images)

The Department for Work and Pensions (DWP) has explained which bank accounts it'll could prioritise for fraud checks.

It comes after it was revealed the DWP could soon have the power to check bank accounts as part of a crackdown on fraud. Katherine Green, DWP director general for labour market policy and implementation, explained that these powers are about "enacting the Government's fraud plan, published in May 2022, to tackle the nearly £9 billion fraud issue".

She clarified that they don't expect to delve into the accounts of pensioners specifically, as most of the fraud they're experiencing is within the Universal Credit system. Ms Green said: "I think as the Secretary of State has said, it's simply that the power is constructed in a way that would allow that, should that be necessary, should there be future evidence.

"We would not expect that at all, as we know and as the published statistics and the annual report and accounts say, most of the fraud we’re experiencing is within the UC (Universal Credit) system. So this is absolutely not a particular intention right now at all to access or to delve into the accounts of pensions specifically."

She added: "We know where the fraud is, we know what we want to prioritise, and it's within Universal Credit and that's absolutely what we would intend to prioritise." Ms Farrington mentioned that suspicions might arise if there were "lots and lots of transactions being carried out in a different country".

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She explained: "At the moment, we do not see large evidence of fraud and error in relation to state pension. Where we do see some fraud and error in relation to state pension is about people living abroad, and where the state pension would be frozen. And if you were resident in this country, your state pension would be uprated. So it's a very small number of cases at the moment."

She added that these powers would "give the Government the freedom and the ability to tackle fraud, where it does arise". Ms Green assured that there would be no direct access to people's bank accounts, but the department could "ask for bulk data from financial organisations such as banks, where we have an indication where there is fraud and error".

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James Rodger