UK Government to Expand Powers in Welfare Fraud Crackdown
New legislation aims to save £1.6 billion by granting investigators authority to deduct funds directly from wages and bank accounts.
- The Fraud, Error and Debt Bill will modernize the Department for Work and Pensions' powers, which have not been updated in 20 years.
- Investigators will be able to recover debts without a court order, directly from bank accounts and pay slips of those who overclaim benefits.
- The bill will extend information-gathering powers to compel all private companies, not just banks, to provide data on suspected fraudsters.
- Privacy advocates have raised concerns, calling the measures 'Orwellian' and a threat to civil liberties, though officials insist there will be oversight.
- The legislation is part of a broader effort to address the £10 billion annual cost of fraud and error in the welfare system.