Latest news with #PublicAuthorities(Fraud
Daily Mirror
04-07-2025
- Business
- Daily Mirror
DWP to start 'monitoring' bank accounts in 2026 to combat benefit fraud
The Department for Work and Pensions is set to introduce new fraud-combatting measures - here's what you need to know This year, the UK Government announced what it calls 'the biggest fraud crackdown in a generation', aiming to significantly reduce the misuse of funds within the welfare system. The Department for Work and Pensions (DWP) believes that the new Public Authorities (Fraud, Error and Recovery) Bill will be instrumental in saving taxpayers a hefty £1.5 billion over the coming five years. The bill introduces tough penalties, including driving bans of up to two years for persistent benefit fraudsters, as well as granting the DWP powers to directly seize funds from the bank accounts of those guilty of fraud. Additionally, the Eligibility Verification system will allow third parties, such as banks, to highlight suspicious benefit claims. The DWP has published 11 new factsheets to clarify how these measures will be safely implemented and monitored. These documents outline that the UK Government plans to start implementing the proposed measures in 2026. The factsheets also elaborate on the checks and balances, including reporting requirements and oversight mechanisms, designed to ensure that the new powers are used in a manner that is 'appropriate, proportionate, and effective'. According to the Daily Record, advice from states: "The Government will begin implementing the Bill measures from 2026. "For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance." The DWP will also gain the ability to gather data from additional third-party organisations, such as airlines, to confirm whether people are claiming benefits from abroad, potentially violating eligibility rules. Eligibility Verification Measure explained It's vital to note that the DWP won't have direct access to the bank accounts of millions of people receiving means-tested benefits like Universal Credit, Pension Credit and Employment and Support Allowance. The DWP will work alongside banks to identify people who may have surpassed the eligibility criteria for means-tested benefits, such as the £16,000 income limit for Universal Credit. Using this information, the DWP will scrutinise the claimant to prevent potential overpayments and possible fraud cases. The legislation only allows banks and other financial institutions to share limited data and forbids the sharing of transaction data, meaning the DWP won't be able to see how benefit recipients spend their money. Indeed, the factsheet makes it clear that banks and other financial institutions could face penalties for oversharing information, including transaction details. It adds: "Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence." New DWP steps to combat fraud The upcoming Bill will uphold the UK Government's manifesto promise to safeguard taxpayers' money, ensuring every pound is spent wisely and effectively: New powers of search and seizure - so DWP can control investigations into criminal gangs defrauding the taxpayer. Allowing DWP to recover debts from individuals no longer on benefits and not in PAYE employment who can pay money back but have avoided doing so. New requirements for banks and building societies to flag where there is an indication there may be a breach of eligibility rules for benefits - preventing debts accruing. All the powers will include strong safeguards to ensure they are only used appropriately and proportionately - including new inspection and reporting mechanisms. DWP will have a clearly defined scope and clear limitations for the use of all the powers it is introducing, and staff will be trained to the highest possible standards. This Bill will empower the Public Sector Fraud Authority to: Improve fraud management in future emergencies by creating specialist time-limited powers to be used in crisis management situations - building on lessons learned during COVID-19. Reduce fraud against the public sector by using its expertise to take action on behalf of other departments, against those who attack the public sector. Improve the government's ability to recover public money, through new debt recovery and enforcement powers. Use new powers of entry, search and seizure to reduce the burdens on the police in the most serious criminal investigations. Better detect and prevent incorrect payments across the public sector through new information gathering and sharing powers. Use strong non-criminal sanctions and civil penalties to provide an alternative to criminal prosecution and to deter fraud. The Public Sector Fraud Authority will adopt a 'test and learn' strategy when using these powers, trialling various methods and expertise to discover the most effective way to combat public sector fraud.
Daily Record
02-07-2025
- Business
- Daily Record
DWP start date for Eligibility Verification and ‘monitoring' bank accounts to tackle benefit fraud
The Eligibility Verification Measure will not give DWP direct access to bank accounts or enable investigators to see how people on benefits spend their money. Reasons your Universal Credit may be cut by DWP Earlier this year the UK Government announced 'the biggest fraud crackdown in a generation' to reduce the amount of money being lost in the welfare system. The Department for Work and Pensions (DWP) estimates the Public Authorities (Fraud, Error and Recovery) Bill will help save the taxpayer £1.5 billion over the next five years. New measures include driving bans of up to two years, for benefit cheats who repeatedly fail to pay back money they owe, powers enabling the DWP to recover money directly from fraudsters' bank accounts and Eligibility Verification, which will allow third-party organisations such as banks to flag potential fraudulent benefit claims. In a series of 11 new factsheets published by the DWP, giving more insight into how the new measures will work safely and be monitored, it confirms the UK Government will begin implementing the proposed measures from 2026. The factsheets also include information on how safeguards, reporting mechanisms and oversight will work to ensure the 'appropriate, proportionate, and effective use of the powers'. The guidance on states: 'The Government will begin implementing the Bill measures from 2026. For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. 'DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance.' The DWP will also be able to gather information from more third-party organisations such as airlines to check if people are claiming benefits from abroad and potentially violating eligibility rules. Eligibility Verification Measure It's important to be aware the DWP will not have direct access to the bank accounts of millions of people on means-tested benefits including Universal Credit, Pension Credit and Employment and Support Allowance. The DWP will work with banks to identify people who may have exceeded the eligibility criteria for means-tested benefits, such as the £16,000 income threshold for Universal Credit - and get that information to then investigate that claimant to prevent possible overpayments and potential cases of fraud. The legislation only allows banks and other financial institutions to share limited data and excludes the sharing of transaction data, which means DWP will not be able to see how people on benefits spend their money. In fact, the factsheet explains how banks and other financial institutions could receive a penalty for oversharing information, such as transaction information. It adds: 'Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence.' Have your say What do you think about the new measure? Share your opinion in our poll and the comments below. You can also join in the conversation in our Daily Record Money Saving Scotland Facebook group here. New DWP measures to tackle fraud The new Bill will deliver on the UK Government's manifesto commitment to safeguard taxpayers' money - ensuring every pound is spent wisely and effectively: New powers of search and seizure - so DWP can control investigations into criminal gangs defrauding the taxpayer. Allowing DWP to recover debts from individuals no longer on benefits and not in PAYE employment who can pay money back but have avoided doing so. New requirements for banks and building societies to flag where there is an indication there may be a breach of eligibility rules for benefits - preventing debts accruing. All the powers will include strong safeguards to ensure they are only used appropriately and proportionately - including new inspection and reporting mechanisms. DWP will have a clearly defined scope and clear limitations for the use of all the powers it is introducing, and staff will be trained to the highest possible standards. The measures in this Bill will enable the Public Sector Fraud Authority to: Reduce fraud against the public sector by using its expertise to take action on behalf of other departments, against those who attack the public sector. Better detect and prevent incorrect payments across the public sector through new information gathering and sharing powers. Use strong non-criminal sanctions and civil penalties to provide an alternative to criminal prosecution and to deter fraud. Improve the government's ability to recover public money, through new debt recovery and enforcement powers. Use new powers of entry, search and seizure to reduce the burdens on the police in the most serious criminal investigations. Improve fraud management in future emergencies by creating specialist time limited powers to be used in crisis management situations - building on lessons learned during COVID-19. The Public Sector Fraud Authority will implement a 'test and learn' approach when utilising these powers, piloting different approaches and expertise to find the best way to tackle public sector fraud.
Daily Record
24-06-2025
- Business
- Daily Record
DWP reviewing new and existing Universal Credit claims for ‘incorrect payments'
DWP has blocked £1 billion incorrect payments in a drive to protect people from falling into debt. Reasons your Universal Credit may be cut by DWP More than £1 billion in incorrect Universal Credit payments have been blocked by the Department for Work and Pensions (DWP) in a drive to stop people falling into financial difficulties. The milestone was reached after a programme to review payments was ramped up by the Labour Government last summer, with more than one million cases now looked at. Overpayments can ultimately lead to financial difficulties for claimants by causing them to fall into debt. The 'Targeted Case Review' was introduced in 2022 to detect incorrect payments, with around 25,000 claims reviewed in the first year. Since July 2024, DWP has nearly doubled the number of people working in its Universal Credit Targeted Case Review team to 6,000. The Department said this significant increase in staff has boosted the number of existing claims reviewed to over one million, saving £1 billion in incorrect payments by detecting historic errors and preventing future overpayments that can result in debts accruing. The number of claim reviews will continue to ramp up now the department has reached its staff target, with nearly 6,000 staff to review claims with forecasted savings of £13.6 billion by 2030. Minister for Transformation, Andrew Western, said: 'This target could not have been reached without this significant boost to staffing numbers - meaning we now have forecasted savings of £13.6 billion by 2030. 'This is a vital programme not only ensuring overpayments are corrected but also makes certain people who are being underpaid receive the money they are entitled to. 'We will not tolerate fraud, error or waste and are committed to safeguard taxpayers' money so it can be invested in the public services we all deserve.' What is a Targeted Case Review? The 'Targeted Case Review' team reviews payments to prevent customers falling into or accumulating further debt, identify unreported changes in circumstances, correct claims retrospectively, and refer suspected cases of fraud for investigation. Reviews verify claimants' eligibility for the benefits they receive by sending a notification to their online account to request proof of identity and other documentation. In the Autumn Budget, the Labour Government committed to the continuation of Targeted Case Review activity for a further two years, with learnings used to prevent error from entering the welfare system in the first place. The aim is to help provide a fair, high-quality service that ensures customers receive their full entitlement and avoid unnecessary debt. These major milestones come as the UK Government outlines further plans to strengthen its ability to reduce fraud and error through the Public Authorities (Fraud, Error and Recovery) Bill. DWP said: 'This is alongside its work to support people into work and become less reliant on the benefit system to drive productivity and unlock growth as part of its Plan for Change.'
Yahoo
17-06-2025
- Business
- Yahoo
DWP claimants who go abroad 'could be monitored' as new powers on horizon
The Public Authorities (Fraud, Error and Recovery) Bill is expected to be rolled out from 2026, as per government-issued fact sheets. Figures from the Department for Work and Pensions indicates that the bill could lead to savings of £1.5 billion over the after five years, reports ChronicleLive. The new legislation includes provisions like driving restrictions of up to two years for repeat offenders who fail to repay falsely claimed benefits, amplified powers for the DWP to reclaim money directly from fraudsters' bank accounts, and an Eligibility Verification mechanism. READ MORE: Nationwide issues update on £200 payments and who can expect to be paid Get breaking news on BirminghamLive WhatsApp, click the link to join This Eligibility Verification Measure permits third-party entities, such as banks, to identify potentially fraudulent benefit claimants. But it does not grant the DWP with direct access to individual bank accounts despite widespread concerns when the plans were initially announced. It will not permit investigators to monitor the spending habits of benefit recipients. Instead, it will merely allow banks to collaborate with department investigators in identifying individuals who have exceeded the eligibility criteria. For example, if a Universal Credit recipient has savings exceeding the permitted threshold of £16,000. This can happen unintentionally when legitimate claimants are unaware that a change in circumstances affects their benefits eligibility. The new powers could prevent individuals from unknowingly accumulating debt with the Department for Work and Pensions (DWP) and discourage fraudsters from exploiting the welfare system. The Factsheets also suggest that there will be mechanisms in place to ensure "appropriate, proportionate, and effective use of the powers" to protect legitimate claimants. According to guidance on "The Government will begin implementing the Bill measures from 2026. "For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. "DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance." The DWP will also have the ability to request data from additional third-party organisations, such as airlines, to verify if individuals are claiming benefits while abroad, which may contravene eligibility criteria. The factsheet also details potential penalties for banks and other financial institutions that overshare information and other safeguards that will protect legitimate benefit claimants. The new measures in the bill will also empower the Public Sector Fraud Authority to: Utilise its expertise on behalf of other departments; Enhance detection and prevention of incorrect payments through new information gathering and sharing powers; Employ robust non-criminal sanctions and civil penalties as an alternative to criminal prosecution and to deter fraud; Boost the government's ability to reclaim public money, through new debt recovery and enforcement powers; Exercise new powers of entry, search and seizure to alleviate the pressures on the police in the most serious criminal investigations; Better manage fraud in future emergencies building on lessons learned during COVID-19.
Daily Mirror
16-06-2025
- Business
- Daily Mirror
Countdown begins on DWP's new powers to monitor bank accounts
The new powers are part of a plan to crackdown on benefit fraud which is costing the system around £9.5billion The Public Authorities (Fraud, Error and Recovery) Bill is set to start its rollout from 2026, according to government-published fact sheets. Data from the Department for Work and Pensions indicates that the bill could result in savings of £1.5 billion over the subsequent five years. The new legislation includes provisions such as driving restrictions of up to two years for repeat offenders who fail to repay falsely claimed benefits, enhanced powers for the DWP to reclaim money directly from fraudsters' bank accounts, and an Eligibility Verification mechanism. This Eligibility Verification Measure allows third-party entities, like banks, to identify potentially fraudulent benefit claimants. However, it does not provide the DWP with direct access to individual bank accounts despite widespread concerns when the plans were first announced. It will not permit investigators to monitor the spending habits of benefit recipients. Instead, it will simply enable banks to work with department investigators in identifying individuals who have exceeded the eligibility criteria, as reported by the Daily Record. For instance, if a Universal Credit recipient has savings exceeding the permitted threshold of £16,000. This can occur unintentionally when legitimate claimants are unaware that a change in circumstances affects their benefits eligibility. As a result, the new powers could stop people from unknowingly racking up debt with the DWP and deter fraudsters from exploiting the welfare system. The Factsheets also indicate that there will be mechanisms in place to ensure "appropriate, proportionate, and effective use of the powers" to protect legitimate claimants. According to guidance on "The Government will begin implementing the Bill measures from 2026. For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. "DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance." The DWP will also be able to request data from additional third-party organisations. Such as airlines, to check if individuals are claiming benefits while abroad, which may contravene eligibility criteria. The factsheet also outlines potential penalties for banks and other financial institutions that overshare information and other safeguards that will protect legitimate benefit claimants. The new measures in the bill will also empower the Public Sector Fraud Authority to: Utilise its expertise on behalf of other departments Enhance detection and prevention of incorrect payments through new information gathering and sharing powers Employ robust non-criminal sanctions and civil penalties as an alternative to criminal prosecution and to deter fraud Boost the government's ability to reclaim public money, through new debt recovery and enforcement powers Exercise new powers of entry, search and seizure to alleviate the pressures on the police in the most serious criminal investigations Better manage fraud in future emergencies building on lessons learned during COVID-19
