Later this year, households with £5,000 in savings will be able to invest in a new type of ISA. The Government has confirmed the introduction of a new British ISA to encourage investment in UK companies and boost the City.
25.02.2024 - 08:45 / manchestereveningnews.co.uk
The Department for Work and Pensions (DWP) has announced when it will start checking bank accounts of people who claim benefits.
This is part of new rules that mean banks and building societies have to watch out for any activity in these accounts that might break the rules, and then hand over the information to the DWP.
The new powers are in place to prevent people from tricking the DWP into giving them benefits they aren't entitled to. This could be because they have too much money, are working or are spending time abroad, among other factors.
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According to government figures, £8.3 billion was lost due to error and fraud in the welfare system in 2022/2023, as reported by BirminghamLive. The new system will tell the DWP if you have more than £16,000 in your bank and are claiming Universal Credit or other benefits, for example.
Right now, the DWP can only ask to check someone's account if it thinks fraud has been committed. It also relies on people claiming benefits to tell them about any changes in their situation - like getting a large some of money - that mean they shouldn't get benefits anymore.
The new rules will mean banks and building societies have to share information with the DWP about all accounts where benefits are paid into. The top 15 banks in Britain - which handle 97 per cent of all DWP benefit payments - will have to set up systems that automatically keep an eye on these accounts to look for signs of possible fraud.
The new law would allow other banks to join in the future. This means that people who are trying to cheat the system can't just move their money somewhere else to avoid getting caught. The DWP plans to test this new plan from
Later this year, households with £5,000 in savings will be able to invest in a new type of ISA. The Government has confirmed the introduction of a new British ISA to encourage investment in UK companies and boost the City.
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