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Parliament Backs Targeted Bank Data Checks for Benefits After Oversight Expansion Fails

The Commons kept the independent review narrowly defined after rejecting a Lords amendment by 268–80.

Overview

  • The Public Authorities (Fraud, Error and Accountability) Bill has cleared both Houses and is in final procedural steps before becoming law.
  • Ministers will be able to request a limited set of banking data through an eligibility verification measure to help identify incorrect benefit payments.
  • Peers’ bid to require the independent reviewer to assess costs, impacts on vulnerable people, and any effects on access to banking was voted down in the Commons.
  • MPs warned of algorithmic ‘mass fishing’, citing that scanning 10 million accounts with a 1% error rate could wrongly trigger about 100,000 investigations.
  • DWP minister Andrew Western said decisions will involve human oversight, the data does not imply wrongdoing, and no one should be de-banked because of these checks, while banks have flagged potential compliance burdens.