Overview
- The imminent legislation would let DWP investigators request banking information and make direct withdrawals from accounts to recover unpaid debts after claimants leave the benefits system.
- Initial checks will apply to Universal Credit, Employment and Support Allowance and Pension Credit, which the DWP cites as having the highest fraud and error rates.
- Officials must secure at least three months of statements before any withdrawal, and an independent person will oversee how the powers are used.
- The DWP currently recovers overpayments through deductions from ongoing benefits or via PAYE, so direct bank recovery marks a significant shift in enforcement.
- Experts say the measures could cut fraud but warn of wrongful flags and mistaken deductions, urging stronger digital verification and data‑sharing, while civil liberties groups and legal analysts question the proportionality of broad account monitoring.