The DWP is to begin continuous surveillance of the bank accounts of all pension credit, universal credit and employment and support allowance claimants using powers under a bill currently going through Parliament.  The department have said that they intend to use their new power to force any third party to pass on data to them more widely in the future.

The power to compel third parties into providing any data that the DWP wants in order to search for fraud and error is being conferred in last minute amendments slipped into the Data Protection and Digital Information Bill, which has now passed its third reading in the Commons and moved to the Lords.

Initially the DWP say that they will use their powers to oblige the UK’s top 15 banks to monitor the accounts of all means-tested benefits claimants and report every time an account goes over the  capital limit or is used abroad for more than four weeks.

Because every DWP payment into a bank account has an identifying code attached to it, all banks know exactly which of their customers is on benefits and which benefits they receive.

Setting up software to automatically send details to the DWP of every claimant account that goes over the capital limit or is used abroad for more than four weeks will be very straightforward for banks.

The DWP say that each identified claim will be investigated in the normal way and that penalties will not be automatically imposed.

At the moment, almost 9 million claimants would be caught in the surveillance net, including:

  • 5.8 million universal credit claimants
  • 1.6 million employment and support allowance claimants
  • 1.4 million pension credit claimants

Any bank failing to collect and pass on data to the DWP will be subject to heavy fines.

 The new system will begin to be rolled out in 2025, though all banks may not be fully involved before 2030.

The DWP estimates that it will cost around £30 million a year for them to investigate potential fraud identified by the new system, but that they will save £500 million a year through reduced fraud and error.  

They also estimate that over the first ten years, the new powers will result in 74,000 prosecution cases and 2,500 custodial sentences.  

There is no doubt that the DWP intend to use these new powers much more widely.  The impact assessment for the new powers says that:

“The power is not limited to a specific type of data or type of institution/Third-Party to allow us to fight new fraud and error issues as they emerge and engage with new institutions as efficient opportunities become available to us.”

Later, the same document says: 

“This measure is drafted broadly . . .  to enable DWP to apply this measure to non-financial organisations in future if it is deemed appropriate and proportionate”

The new surveillance powers for the DWP appear to enjoy cross party support. Only 51 MPs voted against the amendment, with 30 of those being SNP and just 7 each from Labour and the Lib Dems.

Anyone who imagines that the DWP will use such sweeping powers reasonably and proportionately probably hasn’t ever claimed benefits.

And they probably also don’t remember the Regulation of Investigatory Powers Act, which was brought in to combat terrorism and organised crime and ended up being used to spy on dog walkers, pigeon feeders and people putting out their wheelie bins too early.

Capital and abroad fraud account for less than 15% of benefits fraud and error. The DWP will want to delve into many other aspects of claimants lives in order to identify the other 85%.  This is, beyond doubt, the thin end of a very thick wedge.

You can download a copy of the amendments to the Data Protection and Digital information Bill here.  The Power To Require Information For Social Security Purposes section begins on page 98.

You can read the impact assessment for the DWP surveillance powers here.

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  • Thank you for your comment. Comments are moderated before being published.
    ABC · 8 months ago
    Does anyone know when or if this will get through the house of lords?
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      Dan · 7 months ago
      @J Facts
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      J · 7 months ago
      @ABC Who knows but they should start at the top every lord n mp is comitting tax fraud claiming on houses they rent out fraudulent expense claims and having parties on our tax money during lockdowns ... will I pay less tax on my wage if they stop all the fraud answer is no , what about all the immigrants getting money and houses but they choose to pic on disability people and struggling families 
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    D · 8 months ago
    Also are these checks real time like whe DWP calculate your UC payment , or will they check the entire account history since opened ? And what about closed accounts from years ago , will they be checked ? Not that I ever had savings etc but I had a bad gambling problem and would have to go through everything , it would be a nightmare to explain the ins and outs 
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      Jan · 7 months ago
      @Dan Yes it's another chapter from 1984
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      Jan · 7 months ago
      @D I'm sure that's a lot of resources for checking that far , they wouldn't have
    • Thank you for your comment. Comments are moderated before being published.
      Tim · 7 months ago
      @D Hello there D, that nightmarish checking you are concerned about. This will not happen. Some real people will evaluate circumstances after the 'Tin Man' (Ai) So please don't feel anxious. I get the feeling you are doing well. All the best, Tim.
    • Thank you for your comment. Comments are moderated before being published.
      Dan · 7 months ago
      @D Read George or wells 1984
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      D · 8 months ago
      @pp Sorry pp but where have you read that they are going to ask excatlly what we spend our money on ? And also where have you heard that if you take it out in cash they are going to want an explanation? I haven't heard that anywhere and I love read up on this alot , as I understand it it's for savings limits and if your abroad for to long and they check in any active bank account you have 
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    D · 8 months ago
    I have read that they will test it from 2025 , before starting to roll it out fully from 2027 finishing in 2030 
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      Jan · 7 months ago
      @D That seems strange, such a massive scale and then ending it 
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    reasonstobecheerful · 8 months ago
    I think you're right @Aaron when you say they're not going to be catching anyone intentionally committing fraud. I made that point when I responded to the "consultation" (yeah right) on changes to the wca. It's only the "skint little people" will be clobbered.
  • Thank you for your comment. Comments are moderated before being published.
    Sara · 8 months ago
    Hey Joe, don't apologise, keep spamming!
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    Aaron · 8 months ago
    The hilarious thing is, those who may be commiting fraud are not using the same bank accounts that they have their benefits paid into. Some are using online bank accounts. So they ain't really going to be catching anyone intentionally committing fraud, and just cause complete an utter unnecessary stress to vulnerable being accused of all sorts when normally there's an honest explanation. 

    If anyone is disabled  and claims, dont think they won't use your spending habits against you. That one birthday you went to that took you months to prepare for and exhausted you.. yeah they will use that. That holiday you saved years for.. yep they will use that. 

    Cash is king! 
    • Thank you for your comment. Comments are moderated before being published.
      Nik · 6 months ago
      @Aaron Pre-paid credit cards for spending may offer an extra level of protection unless they can audit the CC company.  I've started using a CC for online purchases so my bank doesn't know where I'm spending my money.  In person I always use cash.
    • Thank you for your comment. Comments are moderated before being published.
      Jan · 7 months ago
      @Aaron Online is still at a bank , and the bank will be able to link 
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      rookie · 8 months ago
      @Aaron @Aaron, true dat! So exactly the examples - months to prepare for and exhausted you - so feeling that.
  • Thank you for your comment. Comments are moderated before being published.
    Sara · 8 months ago
    Sign the Wendy Scott petition in Stacey's post below. If it keeps being signed at the current rate it will exceed the 100,000 signatures needed for debate.
  • Thank you for your comment. Comments are moderated before being published.
    ABC · 8 months ago
    Hi, this mentions it will only be for means tested benefits. I am on contbased esa. How will the banks know who is on cont based esa and who is on imcome based esa?
    Thanks
    • Thank you for your comment. Comments are moderated before being published.
      BirtyB · 8 months ago
      @ABC Hi ABC, if you are in contribution based ESA, then the amount of capital that you have would not have any effect on your ESA. An alert might be sent to DWP, but they would close it as no effect on the benefit
    • Thank you for your comment. Comments are moderated before being published.
      pp · 8 months ago
      @ABC Also PIP isn't means tested but also still be monitored.
    • Thank you for your comment. Comments are moderated before being published.
      pp · 8 months ago
      @ABC My understanding from reading their articles, they're clearly saying that all claimants have a code, which will flag up their "secret criteria". Non of their articles say that it will be only means tested, also it will be difficult to separate the means tested from the contribution based if they're going by the codes. How is this going to work?
    • Thank you for your comment. Comments are moderated before being published.
      ABC · 8 months ago
      @rookie I think it's only pension credit. This is means tested as far as i know
    • Thank you for your comment. Comments are moderated before being published.
      rookie · 8 months ago
      @ABC Good question, I have wondered the same about contribution related and going over a limit when there is no limit, plus how or will banks differentiate between assessable  and disregarded capital? I suppose the issue of spending time abroad will still apply. Pensioners would be surveilled too, so it's not all about means testing.
  • Thank you for your comment. Comments are moderated before being published.
    Stacey · 8 months ago
    Here is a link to the government petition to my one against this - 

    https://petition.parliament.uk/petitions/650940
  • Thank you for your comment. Comments are moderated before being published.
    Sara · 8 months ago
    Hi Toadstool. Some of my comment and the link didn't post, so trying again. Contribution/New Style esa is not means tested and you will continue to get it if you stay in support group/lcwra. The info about child tax credits is near the end of this article:

  • Thank you for your comment. Comments are moderated before being published.
    Sara · 8 months ago
    and the link I posted below explains how child tax credits are not affected by savings, but please check with an adviser.
  • Thank you for your comment. Comments are moderated before being published.
    Sara · 8 months ago
    Your case is comp!ex, Toadstool, so you should take advice from CAB or another qualified centre. It seems at least some of your benefits are not means tested, so you probably have not as much to be afraid of, but do check. When you have the facts you are better prepared.

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    Toadstool · 8 months ago
    I've just had the letter stating that our family has to move to UC from child tax credits. I also claim contribution-based ESA and I'm in the support group. Will I have to move this over, or will I be allowed to keep this separate?  I cannot find anything about this online. 
    I still have savings as well and it's impossible to have an accurate estimate as they are 10-year plans that can go up or down. I really don't need this worry right now TBH as my health is extremely poor right now. 
    I sacrificed a lot to save in very tough times and now I'm going to be punished and financially restricted. It really isn't fair as I'm not fit to work, lost my career due to my disability and feel stuck in this Orwellian society. 
    • Thank you for your comment. Comments are moderated before being published.
      Andy · 8 months ago
      @Toadstool Probably moved onto UC as all other benefits are being phased out 
  • Thank you for your comment. Comments are moderated before being published.
    pp · 8 months ago
    No doubt this bill will go through, but may be watered down at parliament. Both tories and Starmer don't like the poor working class people dependent on benefits. Who says they wont still secretly and sneakily go ahead and monitor everyone's accounts without anyone of us knowing they're doing this. This is all very unsettling.

  • Thank you for your comment. Comments are moderated before being published.
    Abc · 8 months ago
    Hi. This says it’s only going to be for means tested but are they going to have to check everyone (means tested or not) for using it abroad? Thanks
  • Thank you for your comment. Comments are moderated before being published.
    pp · 8 months ago
    My main concern is we all know dwp don't do things fairly, look what happened to the post office employees. Lot of people all innocent, committed suicide rather than let the government hound them. I feel this will happen again especially when claiments are innocent  with serious health conditions, feeling unwell and  disabled who don't want to face the long endless interigation.  I strongly feel alot of people will commit suicide rather than face the  ordeal of having  dwp  interigate them.
    • Thank you for your comment. Comments are moderated before being published.
      Raymondo · 8 months ago
      @pp Totaly agree since this lot came in to power they have gone crazy trying to criminalize the poor disabled and elderly .next thing is tax your pension . they will know every penny you spend why didn't labour go against this it must be against your civil rights. also your partners account too. Disgracefull, 
  • Thank you for your comment. Comments are moderated before being published.
    tom reid · 8 months ago
    im retired what happens here all i get is my gov pension

    • Thank you for your comment. Comments are moderated before being published.
      Andy · 8 months ago
      @tom reid As long as you aren't claiming it whilst living overseas you are fine
  • Thank you for your comment. Comments are moderated before being published.
    Jeff · 8 months ago
    Hi, with regard to ESA, does the clause 24 snoop only apply to the head claimant?
    • Thank you for your comment. Comments are moderated before being published.
      Andy · 8 months ago
      @Jeff It applies to the account that benefits are paid into, a partner's details can be seen if it is a joint account 
  • Thank you for your comment. Comments are moderated before being published.
    ABC · 8 months ago
    Hi. This article says this will start in 2025 but i saw a newspaper article today saying 2024. Is this correct?
    • Thank you for your comment. Comments are moderated before being published.
      Jan · 7 months ago
      @ABC I've seen that as well 
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      Dottie · 8 months ago
      @pp Thankyou pp its a vety unsettled time for us aĺl. Wishing everyone the best in keeping their anxiety levels down .
    • Thank you for your comment. Comments are moderated before being published.
      pp · 8 months ago
      @Dottie Hi Dottie,
      As far as I know at the moment they're only contacting claiments who they have their suspicions on. But according to B&W here, it will be rolled out in 2025 when the bill becomes law in parliament. We're all in the same position, feeling anxious as don't fully know what's happening.
    • Thank you for your comment. Comments are moderated before being published.
      Dottie · 8 months ago
      @ABC Hi Abc im hopeing someone may be able to clarify this, i hope it never comes to power, but i would feel easier if i knew what year this will start. So anyone who can put our anxiety down a little please come on and help. Much app. 
  • Thank you for your comment. Comments are moderated before being published.
    Sara · 8 months ago

    @Bella Hi Bella, Pip is not means tested, so no capital limit.

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