A major update has been issued ahead of bank account checks from the Department for Work and Pensions ( DWP ). Under the Labour Party government, the DWP is preparing to rollout bank account checks if they are suspicious of fraud and error.
Ben Fleming, financial crime analyst at Ocean Finance, warned investigators could soon be exercising the new powers. He said: “While there’s no confirmed start date for this DWP change, it’s likely these powers will begin to be used within the next year, as fraud prevention is usually a high priority for the Government.”
But he warned that for innocent claimants, the prospect of being wrongly targeted could cause “unnecessary anxiety”. He explained: “Mistakes do happen, and the stress of being investigated can be overwhelming.” He called for proper safeguards to ensure the powers are used properly.
READ MORE All parts of England that WON’T see snow this weekend according to Met Office
Mr Fleming said: “Clear communication is essential. If a claimant’s account is flagged, they should be notified promptly and provided with a straightforward explanation of the process. Any investigation should start with a conversation—not an assumption of guilt. Claimants should have the chance to explain any unusual transactions or discrepancies before further action is taken.”
Mr Fleming said: “Improving ID checks or cross-referencing information with other systems could help identify false claims before payments are made. However, this should be done carefully so it doesn’t create extra barriers for people who genuinely need help.”
The expert also said officials should tackle some of the causes why people turning to fraudulent claiming benefits. He explained: “In some cases, financial pressure might push people into making dishonest claims. Offering better access to budgeting advice and support for those struggling could reduce the temptation to bend the rules.”
The powers have been slammed by human rights campaigners and privacy experts, who’ve branded them akin to Big Brother.