In a move to bolster its counter-fraud efforts, the Labour Party government is set to recruit additional staff in preparation for bank account checks. Work and pensions minister Andrew Western has announced that from April 2025, funding will support 3,000 new roles within the Department for Work and Pensions’ Counter Fraud, Compliance and Debt (CFCD) division.
In addition, according to the Labour MP, this will supplement the already planned increase of the CFCD workforce to the size of 9,923 full-time positions for the fiscal year 2024/2025. Mr. Western commented: “Training resources and learning journeys for all new starters are robust and clearly defined. Most of our new starters will also align and be assured against Government Counter Fraud Profession (GCFP) cross-Government counter-fraud standards.”
Government Functions create a cooperative framework for organisations to work within and across boundaries, ensuring efficient and effective implementation of policy, outcomes and services. The Government Counter Fraud Function, one of fourteen such government functions, is vital in coordinating the management of counter fraud, bribery, corruption, and wider economic crime.
By connecting public servants dedicated to detecting and combating these crimes, the function plays a crucial role within the government’s infrastructure. The announcement comes at a pivotal moment as the government intensifies efforts to clamp down on fraud, with a particular focus on four key benefits, reports Birmingham Live.
Steven Kibbel, a financial planner with Gold IRA Companies, remarked on the new powers granted to authorities to scrutinise claimants’ bank accounts. He pointed out: “I believe these new powers to check claimants’ bank accounts will primarily target means-tested benefits.”
Expanding on which benefits may be affected, he said: “Universal Credit is likely to be a major focus, as it’s one of the most widely claimed benefits and has a savings limit of £16,000.” He added: “Other benefits that could be subject to these checks might include Jobseeker’s Allowance, Employment and Support Allowance, and Housing Benefit.”
Sebrina McCullough, director of external relations at Money Wellness, voiced concerns over these new enforcement measures, saying: “These measures may inadvertently harm vulnerable individuals more than they deter large-scale fraud. Safeguards must include clear oversight to ensure transparency in how data is used.”
She stressed the importance of fairness and protection for the claimants: “As well as proportionality in targeting suspected fraud and a robust appeal process to protect individuals from being wrongly accused.”