DWP will look for 'two things' when it starts checking benefit claimants' bank accounts
15.05.2024 - 10:55
/ manchestereveningnews.co.uk
The Department for Work and Pensions (DWP) will focus on 'two things' when it begins checking benefit claimants' bank accounts as part of a capped legislative initiative to curb fraud, debt and error.
With these impending powers, DWP investigators will have the ability to scrutinise claimant's banking activities. These checks come under the auspices of "Third Party Data Gathering". Described as a "data sharing" power, it requires firms like banks to furnish relevant data to the DWP that might indicate an individual does not meet the financial requirements for their claimed benefits notably excessive savings.
Presently, Universal Credit agreements negate qualification if you hold more than £16,000 in cash, investments or savings. This rule delineation will be a central focus for the DWP.
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Additionally, they'll assess if recipients are living abroad beyond prescribed limits. The legislation, now en route to the House of Lords, also mandates banks to oversee their customers on benefits, reporting to the DWP any account exceeding the capital threshold or used overseas for longer than four weeks.
The Department for Work and Pensions (DWP) has moved to reassure the public that its new policy will only provide "limited and relevant" information to detect improper benefit payments, without granting access to individuals' bank accounts or scrutinising personal spending habits, reports the Mirror.
Previously, the DWP announced plans to monitor accounts from the UK's major banks, which include Bank of Scotland, Barclays, Halifax, HSBC, NatWest, Santander, and TSB, covering 97% of benefit