The Department for Work and Pensions (DWP) has released a significant update regarding contentious plans to scrutinise the bank accounts of benefit claimants. The DWP has confirmed that the new Fraud, Error and Debt Bill will be introduced to Parliament “early in the new year”, with a debate scheduled.
Concerns have been raised about the use of AI in benefits decisions, particularly after a Freedom of Information (FOI) request suggested that AI systems used by the DWP could discriminate against individuals based on characteristics such as age and disability. Labour MP Andrew Western responded to these concerns, stating: “We face a significant challenge, with fraud and error costing the Department almost £10 billion a year. It is right that we look to utilise all available tools to tackle it. However, I understand her concerns, although I would remind her that the final decision on whether someone receives a welfare payment is always made by a human.”
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Meanwhile, Labour/Co-op MP Sally Jameson has drawn attention to the staggering £35bn lost due to fraud and error during the Covid pandemic and has called on the DWP to explain how it plans to recover this enormous sum.
“Can the DWP outline the plans and the timeline for recouping that money? ” she enquired, prompting the MP to respond: “The Fraud, Error and Debt Bill is due to come to the House early in the new year. This Government are serious about tackling fraud; it is just a shame that we inherited the mess we did.”
He further clarified regarding the upcoming Fraud, Error and Debt Bill that “it will not give DWP access to any bank accounts, nor any information on how claimants spend their money”. He added that financial institutions would only provide “limited information” to the DWP which would help in “help verify benefit eligibility by flagging possible conflicts with eligibility rules.”