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Bank Data Checks Bill Clears Parliament With Safeguards Pledged

Ministers promise human decision‑making to prevent debanking.

Overview

  • The Public Authorities (Fraud, Error and Accountability) Bill has passed both Houses and is in final procedural steps before becoming law.
  • Its Eligibility Verification Measure will let departments request limited banking data to spot incorrect benefit payments, including flags for savings above Universal Credit’s £16,000 capital limit.
  • MPs in the Commons rejected by 268–80 a Lords amendment to expand the independent reviewer’s remit to assess costs and impacts on vulnerable claimants and access to banking.
  • Critics warn of disproportionate, algorithm‑driven trawls of millions of accounts, citing that a 1% error rate could wrongly trigger about 100,000 investigations.
  • Work and pensions minister Andrew Western says data checks will not imply wrongdoing, decisions will involve human oversight under a code of practice, and banks have cautioned that added reporting could impose significant compliance burdens.