DWP won’t check bank accounts of those who receive 1 benefit | UK | News
Under the new laws, DWP officials will be able to request access to view the bank accounts of those who request it. The move aims to stop benefit fraud and the DWP can now ask banks to provide information about accounts linked to certain benefits. However, one benefit is exempt from the new law. The new power is known as the Eligibility Verification Measure and will initially be used to check people who receive three benefits: Universal Credit, Pensions Credit and Employment and Support Allowance.
According to the legislation, this may be extended to other benefits. “DWP The business will gradually introduce the use of the Conformity Verification Measure in a test and learn environment to provide sufficient time to establish best processes, a government document said. A DWP spokesman previously said the move would save taxpayers £2.1bn over the next five years, as part of wider plans to save £14.6bn.
However, the State Pension is expressly excluded from this entitlement, so it cannot be included with other benefits. Unlike many other benefits, the State Pension is not means tested, so it falls into a different category.
“The legislation includes an Eligibility Verification Measure that requires banks to share limited data about beneficiaries who inadvertently receive benefits,” the spokesperson added. “It does not include access to benefit claimants’ bank accounts.”
While the legislation states other benefits could be included in this new move, the DWP says it has no current plans for this. The ministry also said that no personal information will be shared.
A government document says: “If the Secretary of State wishes to extend the scope of benefits covered, this must be discussed and approved by Parliament. This excludes the State Pension, which is prohibited from being added by legislation.”
The legislation also states that penalties may be issued to banks and other financial institutions for non-compliance with Compliance Verification Notices. To avoid penalties, banks must respond within the time frame.
They may also be penalized for sharing information that should not be shared within the scope of the new measure.
