Overview
- The Public Authorities (Fraud, Error and Recovery) Bill would let the DWP verify eligibility by obtaining limited bank data for Universal Credit, ESA and Pension Credit, with the legislation allowing future expansion to other benefits.
- Reports clarify that banks do not routinely share line-by-line transactions, which are only examined during formal fraud investigations with a defined process.
- The bill includes powers to recover proven debts directly from bank accounts in lump sums or instalments, with advance notice and requests for at least three months of statements to confirm available funds.
- Civil-liberties groups warn algorithmic flags could incorrectly target vulnerable people and urge MPs to keep Lords-added safeguards, including senior human review and independent oversight.
- Experts suggest the verification regime could be extended to other means-tested payments and supported by wider financial checks, while separate provisions allow DWP access to travel data to confirm time spent abroad.