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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.
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