Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential merits of alternative methods to reduce fraud and error in the benefits system that would not involve granting her Department's investigators access to claimants’ bank accounts.

Fraud and error in the social security system currently costs the taxpayer almost £10 billion a year and, since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to the money. This Government will reduce these levels to stop those looking to defraud the system and reduce the risk of individuals building up large overpayments.

The Eligibility Verification Measure, which will allow banks and financial institutions to share limited information with the DWP to help verify benefit eligibility, has been proposed after extensive consideration and policy development as the most effective way to prevent incorrect payments and crucially, help prevent debts accruing for claimants. As the National Audit Office pointed out, access to data is key to prevention and detection of incorrect payments.

The Eligibility Verification Measure will not give DWP powers to access anyone’s bank accounts, nor any information on how claimants spend their money. Claimants fulfilling their responsibilities by promptly and accurately reporting any changes in their circumstances will not be impacted by these changes.

We will ensure that these powers are proportionate by setting out key safeguards, reporting mechanisms and independent oversight, to give greater confidence to claimants that the powers are being used fairly and effectively.

We will rely on Codes of Practice where they already exist and, where they do not, we will consult on and produce new Codes of Practice to provide further reassurance on the safe use of the powers.

Further details will be set out when the Bill is introduced to Parliament.