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.
    Matthew · 9 months ago
    Does anyone know if they will be able to check all our bank accounts? Or only the account that benefits are paid into. This excerpt suggests only the bank your benefits are paid to..

    '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.' 

    I am concerned about this as I do declare all my endings as a self employed person and as a family we get UC that tops us up depending how much ive earnt over the month. However, as a family struggling to make ends meet we regularly take out short term loans, money transfers from credit cards and personal and bank loans from friends and family,  all of which are paid back adhoc when benefits and work pay come in. I'm worried all of this will seem like we have more income than we declare and will therefore be deemed frausters! 

    Thanks in advance for any guidance. 

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      Andmaq · 9 months ago
      @keeping it real Much appreciated for your informed reply. Will definitely contact CAB for advise.
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      keeping it real · 9 months ago
      @Matthew Hi Matthew, all I can work out at the moment is that even if the bill goes through and becomes law, no individual accounts will be routinely accessed, just mass data somehow used to flag up fraudulent activity for further investigation. I really don't understand how that functions, and remember this is all very much at the planning stage. 

      Regarding your loans, I think as long as you don't have a regular income stream besides your earnings, and you do not keep more than the £6000 savings threshold in the bank when you borrow, you should be ok. The best way for friends or family to help out is for them to pay for things directly, rather than give or loan you money.

      You might want to check with an advice centre, such as CAB, though. You could get guidance there, too, about any other benefits or hardship loans you can apply for. It's quite common for people not to know all their entitlements.

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    jan evans · 9 months ago
    Like so many others, I have through good housekeeping and moderation, amassed savings during Covid that now exceed the £6K limit: by default we couldn't spend it.  My benefit is my only income, no fraudulent activity here your Honour: unlike the Tory, Baroness Moane, who lied and lied throughout about her family profiting from the UK tax payer to the tune of £60 million via the VIP lane set up by this Government to secure contracts during Covid (PPE - scandle, ongoing) I have moderate ME/CFS and am sorry to say, that after 45 yrs of public service work I now rely on PIP & ESA until I officially retire next year (to my meagre pension).  So here's the thing: are we really to believe, that despite our rights being systematically - often silently eroded by this Government, that they will give us the legally required 'benefit', then tell us that saving any part of it is illegal?  This is absurd nonsense and unworkable.  The state (via the tax payer) does indeed lose billions to fraud each year and this needs to be tackled: from criminal Landlords who claim HB for fake citizens - and perhaps there are Pensioners, who live in Spain and play the system etc etc.  I do play or defraud the state.  I gratefully accept the help they offer.  I cannot then be tried and convicted of a crime that isn't a crime.  Nonsense.
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    Anon · 9 months ago
    Where there is tyranny and overreach. Anonymous will be involved to even up th odds. 
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      jan evans · 9 months ago
      @Anon Oops! Of course that last line ought to have read: I do NOT play or defraud the state. :o))
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    Aaron Cancer fighter · 9 months ago
    I’m a little concerned about this as I receive ESA & PIP I get the maximum as far as I know and have had to fight for this.  I have 2 cancers one which requires min of 2 surgeries a year and the other which requires chemo for life.  Anyhow to survive I’ve cut back everything I can I changed to an interest only mortgage I drive a car which is 17 years old I budget as well as I can and I was able to live within my means.  I was even able to save a little so I was able to go on the odd holiday.  Now just because I manage my income and use old hand me down phone and sim only should I be worried that I’ve built up a nice safety net totally because I don’t splurge no obviously the cost of living has hit hard mortgage deals ending means that the nest egg is going down.  Now here’s the question all the money I’ve saved is only obtained through the benefits system but because I watch my spending does that mean these savings could reduce the amount of ESA (which is only benefit this bill covers) that I get?

    Apologies for the rambling thanks for any advice 
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      Pickel · 8 months ago
      @Aaron Cancer fighter Lol funny!!! This kind of thing has been going on for centuries which is why we still find buried treasure lol
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      Joe · 9 months ago
      @Mark How does this work so you can save your benefits up and if it goes over 6 k you are ok? And if you have residue of say 200 quid that counts as capital 
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      Mark · 9 months ago
      @Aaron Cancer fighter Arron - it depends on which type of ESA you are entitled to receive.  If it is Contribution Based ESA, then your savings are ignored in full ( for the purposes of your ESA). However, if it is  (legacy) Income Based ESA, then the capital rules apply. 

      Capital asset  rules do not apply to PIP.

      If you are saving your benefits , the rule DWP apply is as follows. Between the date of payment and the following due date of payment, it counts as income. Any unspent residue then becomes a capital asset. 
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      Rodriguez · 9 months ago
      @Sara good post. Thresholds have remained the same for a long time. Hard to get out of it really.
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      Sara · 9 months ago
      @Aaron Cancer fighter Between £6000 and £16000 your means tested benefits are reduced by £1/week for every £250 or part of £250 over £6000. Over £16000 you are not entitled to means tested benefits but your PIP would continue. It does seem unfair if you've managed to scrape some savings from just your benefits, but as MrFibro says, we're not allowed to climb. Dwp just see that you have means above the threshold and cut the welfare.

      If having a holiday or some extra comfort helps you manage your conditions that is an allowable way to reduce your capital. Keeping £6000 should be enough to cope with emergencies and cost of living, though I think it's high time the thresholds were raised in line with benefits upratings, as they were set ages ago.
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    Somewhereovertherainbow · 9 months ago
    Can anyone tell me what has hapoen with this bill in house of lords today? 
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    keeping it real · 9 months ago
    There we go then, The Dog Mother, the proposed spy stuff's likely to be a bit too nosey for the old duffers I reckon, given the possibility of pensioners' accounts being scrutinised. They don't like it up 'em do they! We have to wonder just how 'anonymised'' the data will be, but it's all starting to sound a bit toothless, not so different in any case from what goes on already and not really thought through. I'd like to know how they did the 2017 and 2022 'proof of concept' trials and how they estimate levels of fraud  - already spying without asking.
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    keeping it real · 9 months ago
    Data and Digital Information Bill has reading in Lords today. Let's hope there are amendments!
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    Humanist. · 9 months ago
    I'd say this legislation is in fact illegal,and also is the fact they track you is stalking.The right to privacy,the human right to equaity,and all these Government issues are violations of The Universal Declaration on Human Rights.
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      Carol K · 9 months ago
      @Humanist. It's simply abuse. We have been abused ongoing since 2008. A lot of people have died who shouldn't have, who could've been saved if we didn't have an evil monstrous DWP and they are getting worse and worse. 
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    Paddy · 9 months ago
    This is disgusting behaviour..can’t believe what I’m reading…what about the fraud of £10 billion over Covid that chancellor Sunak just wrote off. Get him to revisit this amount….disgusting also that MPs agreed to it👎
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    Kate · 10 months ago
    I'm currently fighting cancer & I still have to give the DWP my bank statements.Im not well as chemo is brutal but they just don't care 
    • Thank you for your comment. Comments are moderated before being published.
      Sharon · 9 months ago
      @Kate Omg what is this world coming to??? You have enough to be worrying about,without this disgusting, unbelievable, I'm stuck for words. Hope you get well soon and beat this horrible illness 🙏
    • Thank you for your comment. Comments are moderated before being published.
      The Dog Mother · 9 months ago
      @Kate They don't care if your in a vegetative state.. and that's the truth. I'm not being flippant. 
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    Tom · 10 months ago
    Does this only apply to means tested benefits ?
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      Ash6 · 8 months ago
      @Steve FN Douglas Carers allowance that does not have a savings cap only an earning cap so not means tested other wise the carers would have recieved the cost of living payments my carer only gets carers allowance and they are not curtailed by savings 
    • Thank you for your comment. Comments are moderated before being published.
      Harry Fisher. · 9 months ago
      @Ankaret Harmer It only applies to 'Pension Credits' which are means tested, not ordinary State Pension, which isnt.
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      Concern · 9 months ago
      @Tom It will account for “benefits” which long term could include anything that falls under it by law or that has it in the name, also anyone who’s linked to the person claiming or the payments, ie if you pay for a job or a piece of furniture, that then gives them the go ahead to track it in the person accepting a account. Once you open the door you can’t close it 
    • Thank you for your comment. Comments are moderated before being published.
      Ankaret Harmer · 9 months ago
      @Tom No, it also applies to State Pension . I can't see why!!!! State Pension doesn't take into account your savings or income, I can't really see how you could commit State Pension fraud, as DWP knows about you already all your life, through your National Insurance.
    • Thank you for your comment. Comments are moderated before being published.
      M · 9 months ago
      @Tom No not at present 
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    • Thank you for your comment. Comments are moderated before being published.
      Anne · 8 months ago
      @denby I have Parkinson’s disease, our main income is pip and a small works pension below £400 . We claim no other benefits due to the fact I’m over the savings cap . I received pension early due to poor health.Frightened to even gift my granchildren for being accused of being frivolous instead of frugal .
      So fearful of an unsure future 
    • Thank you for your comment. Comments are moderated before being published.
      Carol K · 9 months ago
      @denby I have just signed 
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      denby · 9 months ago
      @vik222 Come on guys, let' get this to 100,000 as then they have to at least debate it. so far still under 2,000....
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    Mandz · 10 months ago
    This is 'Trojan Horse's legislation. It uses the problem of benefit fraud to gain public approval for legislation that they intend to later expand. Getting their fingers into everyone's bank account has always been their objective.
    • Thank you for your comment. Comments are moderated before being published.
      Linda · 7 months ago
      @Mandz Indeed, they know its a divisive issue and at the moment people hate benefit claiments, so they will have support, but it will affect 90 percent population in the end, next it will be powers to prosecute
    • Thank you for your comment. Comments are moderated before being published.
      Linda · 7 months ago
      @Neil It affects better off people too, who collect state pension, it could be detrimental to banking trade, they can just move their money offshore easily, it's not just about the workshy
    • Thank you for your comment. Comments are moderated before being published.
      Neil · 9 months ago
      @Mandz Everyone should now just close bank accounts and demand a jiro cheque to cash at post office , and work with good old.fashioned cash
  • Thank you for your comment. Comments are moderated before being published.
    Wren · 10 months ago
    This is scary. 
    I believe they will use it retrospectively. 
    claimants not being hyper 
    I also wonder how long before they find a reason to look at everyone's accounts - only then will people notice & complain & it will be to late.
  • Thank you for your comment. Comments are moderated before being published.
    Andy · 10 months ago
    I believe the new powers will allow them to look at accounts retrospectively, meaning they can look back years
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    Jas · 10 months ago
    What is freedom today the Government living in your life from cradle to beyond the grave. I do feel for the future generations as they're taping and pinging their lives as state controlled generations with the system dictating everything they can do say' buy or go. It's the kids who need to learn to not be reliant on tech and cashless lifestyle it will imprison them with stealth. 
    • Thank you for your comment. Comments are moderated before being published.
      Linda · 7 months ago
      @Jas It's about equality and civil liberties, the won't catch the hard line fraudsters anyway, it's just an excuse to bring in big powers
  • Thank you for your comment. Comments are moderated before being published.
    John Walker · 10 months ago
    Could this also be a breach of article 3 of the ECHR which prohibits inhuman and degrading treatment from any signatory govt.
    Also is there any other European government which uses such surveillance methods on their own citizens
  • Thank you for your comment. Comments are moderated before being published.
    Worsethanchina&russia · 10 months ago
    Could constant/regular surveillance be a breach of data laws and human rights laws e.g right to privacy?
    • Thank you for your comment. Comments are moderated before being published.
      Privacy · 10 months ago
      @Worsethanchina&russia What privacy?  You have a PHONE. Tracked... Friends, Travel, Health, Beliefs, Work etc. And that is just your phone...... your on camera everywhere from when you leave home. ???
    • Thank you for your comment. Comments are moderated before being published.
      Chocolady · 10 months ago
      @Inglis 25 And you are correct and it’s not just here it’s all over the world we have very sinister people in charge
    • Thank you for your comment. Comments are moderated before being published.
      Inglis 25 · 10 months ago
      @Worsethanchina&russia They change laws at will, therefore if the Lords agree with the Governments plans they can go ahead. I believe they are trying to do away with all of our human rights.

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