The DWP is to begin continuous surveillance of the bank accounts of all pension credit, universal credit and employment and support allowance claimants using powers under a bill currently going through Parliament.  The department have said that they intend to use their new power to force any third party to pass on data to them more widely in the future.

The power to compel third parties into providing any data that the DWP wants in order to search for fraud and error is being conferred in last minute amendments slipped into the Data Protection and Digital Information Bill, which has now passed its third reading in the Commons and moved to the Lords.

Initially the DWP say that they will use their powers to oblige the UK’s top 15 banks to monitor the accounts of all means-tested benefits claimants and report every time an account goes over the  capital limit or is used abroad for more than four weeks.

Because every DWP payment into a bank account has an identifying code attached to it, all banks know exactly which of their customers is on benefits and which benefits they receive.

Setting up software to automatically send details to the DWP of every claimant account that goes over the capital limit or is used abroad for more than four weeks will be very straightforward for banks.

The DWP say that each identified claim will be investigated in the normal way and that penalties will not be automatically imposed.

At the moment, almost 9 million claimants would be caught in the surveillance net, including:

  • 5.8 million universal credit claimants
  • 1.6 million employment and support allowance claimants
  • 1.4 million pension credit claimants

Any bank failing to collect and pass on data to the DWP will be subject to heavy fines.

 The new system will begin to be rolled out in 2025, though all banks may not be fully involved before 2030.

The DWP estimates that it will cost around £30 million a year for them to investigate potential fraud identified by the new system, but that they will save £500 million a year through reduced fraud and error.  

They also estimate that over the first ten years, the new powers will result in 74,000 prosecution cases and 2,500 custodial sentences.  

There is no doubt that the DWP intend to use these new powers much more widely.  The impact assessment for the new powers says that:

“The power is not limited to a specific type of data or type of institution/Third-Party to allow us to fight new fraud and error issues as they emerge and engage with new institutions as efficient opportunities become available to us.”

Later, the same document says: 

“This measure is drafted broadly . . .  to enable DWP to apply this measure to non-financial organisations in future if it is deemed appropriate and proportionate”

The new surveillance powers for the DWP appear to enjoy cross party support. Only 51 MPs voted against the amendment, with 30 of those being SNP and just 7 each from Labour and the Lib Dems.

Anyone who imagines that the DWP will use such sweeping powers reasonably and proportionately probably hasn’t ever claimed benefits.

And they probably also don’t remember the Regulation of Investigatory Powers Act, which was brought in to combat terrorism and organised crime and ended up being used to spy on dog walkers, pigeon feeders and people putting out their wheelie bins too early.

Capital and abroad fraud account for less than 15% of benefits fraud and error. The DWP will want to delve into many other aspects of claimants lives in order to identify the other 85%.  This is, beyond doubt, the thin end of a very thick wedge.

You can download a copy of the amendments to the Data Protection and Digital information Bill here.  The Power To Require Information For Social Security Purposes section begins on page 98.

You can read the impact assessment for the DWP surveillance powers here.

Comments

Write comments...
or post as a guest
Loading comment... The comment will be refreshed after 00:00.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Though this amendment is deeply worrying, there's a good chance it won't make it past the House of Lords, at least. In all likelyhood, the government know that and this is yet more chum thrown out to win back their base and add to the stress of those claiming disability into the bargin. That said, I am absolutely convinced that their end goal is to have disabled people wearing large badges in public and only being able to shop at certain stores.

    That Labour abstained should tell you everything you need to know about their current aims and goals.
    • Thank you for your comment. Comments are moderated before being published.
      · 9 months ago
      @Ian the sad thing is there is so many out there who think keir will be retracting all this stuff and behave like old labour.  they likely abstained as they have the same goal of reducing the benefits bill.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Ian Absolutely there with you!  Labour under Starmer are an absolute disgrace. I think maybe people are less hateful in general towards those who need to claim benefits, (though don't want to pay more in taxes so that there can be better social security - but the reality is they don't need to, but that's another story) so maybe the petition will get some traction. 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    As the article implies it won’t stop at snooping. The next move? Taking any ‘surplus’ they consider to be above breadline subsistence levels? Taking what’s left upon death? Who knows. But this is a beginning not an end. We are on a well worn path to becoming a neofascist state. 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Well, this means a trip to the bank once a month to empty my bank account except for direct debits. What a pain in the a*se!
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Johno Any cash you have at home needs to be counted towards your capital but it creates more paperwork for staff.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Alan They already have the power.   The new bit is getting banks to flag up accounts to save dwp legwork. 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Caro They can come and sit in the freezing cold like we do then 🤣
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @DarrenSharrocks Their next step will be power to search homes if this government has their way. 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Andy I was asked the same questions recently, I just told them, the cash withdrawn is at home, not spent on anything, it went no further.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    They will have us in the hunger games fighting for our benefits next! 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    I signed up to access my council's housing benefit and council tax support accounts to ensure all is well. When I open the section called Claimant Capital, all my account balances are there and reasonably up to date.
    I wasn't the least surprised.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @WorkshyLayabout If you are claiming means-tested benefits you need to declare every single bank account you have.  If you close any keep a copy of the confirmation letter from bank as they may require the evidence.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @John  your bank accounts wont be there that against GDPR so maybe just what you are due the council post is a bit mesleading
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @John
      The words "all my account balances" worries me.  As in the plural. John, is this just for the one bank account?

      The sentence of the end of the article's first paragraph about the government being able to ask any third party for information is cause for concern. What's to stop them asking the banks whether or not benefit claimants have other accounts? Nothing. For example, benefits go into my ABC bank account, I draw out all money not needed for direct debit and move it into my XYZ  bank account. The government can ask XYZ bank (and all other banks/building societies) if I have an account, finds I do have another account and starts snooping on that too.  Bear in mind that many Daily Moral readers in the home counties believe us "workshy layabouts" should be getting no money at all.

      Pity that I live in the area where Matt Smugman (it's actually Warman, but the man looks permanently smug (he he) is MP.  Guaranteed to get in next election. Very depressing.

    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @John Scary!
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @John John, oh my goodness,this surprises me.I nearly choked on my meatball.So they are being informed already by the banks.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    If you are unfortunate enough to need benefits it seems one is deemed as deserving of no rights - human or legal.  I suspect that the intention is to see exactly where you are spending your money and on what and where which will show them (they think) how often people are going out and where etc and are they socialising.  Maybe they will just put a tag on us all.  Shame no one is going after the real fraudsters and focusing on cleaning up corruption.     
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Daren It is up to everyone how they spend their money.  Staff currently check bank statements for anything that may suggest the claimant is misrepresenting their income and living situation such as undeclared income or partner.  Income-based benefit claimants are not allowed to go abroad for over 28 days (apart from a few situations such as their child needing medical treatment) because they need to be classed as living in the UK.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Linda Is it unfortunate to claim your State Pension? this is also classed as a 'benefit' the pensioners contributed to their pensions and have a right to it this latest stunt that the Gov. are bringing in will check all SP banks as well as pension credit, AA, ESA and similar PIP and UC. In other words unless you are in work and not claiming anything at all including Housing Benefit and Council Tax your accounts will be monitored for any amount across however many accounts you have that breaches the limits of the benefits you claim or for any unusual activity/amounts using abroad. Cash is and always has been King 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @DarrenSharrocks The only problem with taking cash out is that there are now lots of places that only take card payments. I was trying to check out at a supermarket yesterday but there were only ‘Card Only’ self checkouts available! I asked an assistant how I could pay by cash - she said she would have to find someone to open a till. I was down to my last £5 and it took so long that I ended up putting the goods back and leaving the shop. I can’t stand for long so it was hopeless:-(‘ 
      This summer I tried to buy my grandchildren ice creams and noticed just in time that it was ‘Card Only’ !’
      A lot of the time I’m housebound so rely on internet shopping for food, chemist etc plus finding the cheapest price. Increasingly cash doesn’t work given the drive to a ‘cashless society’ We lost our last bank locally 2 years ago and this year lost the last cashpoint. You can take cash out at the little sub post office but that’s only 9-5 Mon- Fri and 9-12 Sat. They’ve got us over a barrel but no way are they opening up their bank accounts for scrutiny. The amount of benefit fraud is minimal especially disability related but all that fraud during Covid where companies were set up just to go through their money for chums channel- suppling defective goods or no goods at all - cost millions if not billions in fraud but it’s just being written off. It makes my blood boil!
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Linda God forbid, while on benefit, you should happen to take a holiday, and you have saved as much of your benefits as you can over a very long period, the cost and the onward spends of thus holiday will be recorded, in transactions on your bank account, and if you have the audacity to use welfare benefits  occasionally, over purchasing a treat or two from perhaps AMAZON or such like, and what if you dare to use your benefit money for a pleasant little game of online bingo or lottery, surely the DWP could then, after checking your personal bank account,  sanction you for daring to overstep the breadline headlock, the DWP strive to keep us in! The future is not orange, its Black and very bleak for Benefit claimants. 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @lesley They also want to check non financial data, I.e shop cctv, bingo, online apps and anything you use that connects you to something where they can see what, where, when, how, who with. There used to be data protection for a reason, why should they have free access to everyone's lives. Disgraceful.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Correct me if I am wrong but I always thought that the government could do this anyway.  Especially for anyone on a means tested benefit.
    Used to have a benefit book. 
    Was in the local post office once and the police were called.  Apparently somebody had just tried to cash a giro for over £400.
    The counter assistant was alerted and did not cash the giro.
    It turned out that the person committing the fraud worked in the DWP and was passing on giros to a friend to cash.
    So who investigates fraud within the DWP itself??
    We don't seem to hear much about that one. Just us slum scum wot gets the blame.
    • Thank you for your comment. Comments are moderated before being published.
      · 10 months ago
      @lesley Internal fraud within the DWP was rife some fifteen years ago according to my source, a lady friend who was assigned to investigate fraud within the DWP. I reckon (with the latest technology) this profession has been stamped out by now within the DWP, or has it?
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Fibrogal I think you're right.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @DarrenSharrocks DWP don’t have enough staff or time to do all this checking or have enough fraud officers to deal with all the extra workload this is a scare tactic a backhanded way of getting people to give up benefits if they have any savings. Think PIP/AA and state pensioners probably not go out regularly for years managed to save over the threshold not realising about the limits to save being prosecuted possibly persuaded to stop claiming until there money in line with limits. I wouldn’t put anything past DWP now 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @lesley We don’t hear much about the fraud committed by Government either which is never recovered… Not fit for purpose PPE anyone? 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @lesley Yes they can but only if they suspect fraud but what the new powers mean is they can do it a
      at any time and with out you knowing. The dwp now have to have a hard case for fraud but the new rules means they do not need too. So if you buy something the DWP does not like or go out to dinner they can say your committing fraud etc. Enough to sanction you while you sort it out and get  your money back. This will drive people nuts.  The DWP are known to abuse their powers and you can be sure they will check state pensions bank accounts, that means any one in the country that has one, a massive net. The excuse is to stop fraud but fraud is very, very, small.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    I wonder how this works when you have a joint account  with your husband, who still works. I'm not on means tested benefits
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Pauline This is my situation also, so I would also like to know.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Pauline any bank statement etc shows where every bit of money paid in comes from, 
      the DWP share info with the tax office [vice versa] who want to tax any income
      ...so they can already look into bank accounts, am pretty sure but am just a civilian on UC with a joint UC account
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Top 15 banks in Uk. ( source Wikipedia)


    Atom Bank    2013    Durham, England    2.8[10]    357[11]    Online only
    Bank of Ireland UK    1783    London, England        1,700    
    Barclays    1690    London, England    873        798
    HSBC UK    1865    London, England    1,998        510
    Danske Bank UK    1824    Belfast, Northern Ireland            
    Lloyds Banking Group†[a]    2009    Edinburgh, Scotland, Registered 
    Metro Bank    2010    London, England    21.6    2,831    70
    Monzo    2015    London, England    0.6    1,600    Online only
    NatWest Group††[b]    1968    Edinburgh, Scotland    691.0        743
    Santander UK    2010    London, England    231    25,872    462
    Starling Bank    2014    London, England    11.9[13]        Online only
    Tandem Bank    2015    London, England    0.5[14]        Online only
    The Co-operative Bank    1872    Manchester, England    25.5[15]    3,350    68
    TSB Bank    1810    Edinburgh, Scotland        7,000    299
    Virgin Money UK plc
    (Clydesdale Bank, Virgin Money, Yorkshire Bank)
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Michael I'm pretty sure the Nationwide Building Society would be in the top 10
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    This is wayyyy off topic, and if it doesn't get posted, I fully understand. 
    I'm sat here with my pooch, he's wearing his fleece Christmas pyjamas as the house is cold. He's also wrapped in a freshly washed blanket. Earlier, I was singing a Christmas song to him,trying to stay upbeat, Then I got hit by a sudden sense of dread,again, for the future, and I stopped singing. 
    I'm actually afraid to be happy, though I try to,in moments.
    I feel as if we aren't allowed to be anything but sad,worried, and hopeless. To feel guilty for our conditions and disabilities. 
    It also struck me that for the short time we are on this earth, we are, if not physically, then mentally tortured by the establishment.
    Maybe that's a bit dramatic for some. But it's how I feel. 
    I sang part of one Christmas song during these past months of sheer terror, for what's to come, and I wasn't even allowed that moment.
    Anyone else feel similar?. Blessings to us all. X
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @The Dog Mother Happiness with your dog is one of the few things they can't take away from you, so really enjoy each others company.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @The Dog Mother I’m so sorry for your situation, I know it seems overwhelming but it can’t last forever an election is your chance to show how you feel 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Claire Dear Clair, Up until I read The Dog Mother post, I had not stopped crying for weeks on end. And, whilst I suffer chronic physical pain day in, day out, the post made me stop crying. Now I feel I want to fight back against the on-going slaughter in words and deeds, who mean us harm. My regards to your good-self.    
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @The Dog Mother The Dog Mother, Your words are so heartfelt, full of clarity, concise and fundamental to what it means to be human. Sadly, those in 'power' have lost that sense of the simple joys of life, which you have eloquently explained. The constant discrepancies between those that suffer on-going pain and suffering, whether physical or mental disabilities, and those that do not , paints a picture of a backward looking society, I.e 18/19th Century. My Love to you and your pooch.  
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Claire Claire, it's a shame we are driven to these thoughts, but I wake many times in the night thinking how we are caught in a cycle of horrible changes we've no control over. I worry about us all, not just myself. When I hear of others being denied benefits, I shrink a bit more inside. Because I know the struggle,far too well.
      When you think that they'd rather pay outsourced companies ridiculous amounts of money,drill us ,wear us down  and give us as much trouble as possible to gain benefits back for another short while,it says so much about how they feel about the sick and disabled. We are treated with contempt and loathing. So, really, if you are willing to throw umpteen millions away instead of using it where it's needed, including on the poor NHS, which is now terminal, it's not really about supporting us. It's about eradicating us. Of that, I'm sure. Take care, and thank you for your kind words.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    I guessed this would happen and I was right, I signed the petition which tryed to stop it, but I also wrote to my MP, who is a conservative and got no reply, I am guessing from the voting stats you have it is because he finds it perfectly acceptable to gain access to peoples private affairs, not his or his govts of course they can do exactly what they like, we are voiceless at the ballot box, and are no better than Russia or China, a complete disgrace.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Tax fraud 23 times less likely to be prosecuted than benefit fraud and costs 9 times more. Guess who this corrupt shower is going after.

    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Tommy Not only the discrepancies in prosecution rates, but the vast differences in the sums involved. 1 case of tax fraud could be into the multimillions, benefit fraud just a few thousands.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    1984 is just beginning...
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Bettahm Was going to say George Orwell 2024 with bells on

      By DWP we need to read the government because DWP and HMRC are just proxies for the government and not entities in their own right
      Be careful who you vote in is all we need to be mindful of
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Not sure what happened to my comment below..  only a portion of it I showing up. Very odd. 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Banks,clothing then
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @James Jamieson If you're claiming PIP, it is not means tested so it's not affected by income.  This is the same for contribution based ESA.  Please contact Citizens advice or call a helpline such as Turn to Us for any advice.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @The Dog Mother What happens to anyone on benifits through ill health if their wife/partner works full time. Will the person in receipt of benifits through iillness have this stopped. Seems to me another reason for my wife to pack her job in which supports my terminal illness and claim benifits.  
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    What do they mean by forcing any third party to pass on information to them? Will family and neighbours be forced to spy and inform on claimants? Will shops have to inform on people using cash?
    What is the UK becoming?
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Andy Probably stuff like PayPal, supermarkets, social media etc, the usual.  Basically spy on every aspect of our life. 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    ATTN MODS Please! Have they published the list of 'top 15' banks? If so, could B&W post the list here please? Thankee kindly.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    There is that 2030 date again
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    £1 for every £250 over£6000. I don't think they'll take much notice until you max out over £16,000 let's also remember they underpaid lot's of disabled for over a decade maybe the disabled should investigate them more. 😉 I remember them wasting money in courts to pay people what they legally was entitled to only to lose. Let's not forget all the unpaid and low paid carers they save millions on that. As for getting a bank to be open or useful today good luck with that one. 🤗 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Jas The problem is once dwp has the power they will do it any way on any one they do not like or take a fancy too. 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    can guarantee they will still look at those not  on  means tested benefits,  i.e State Pension, PIP,IIB , etc etc. In fact these will be easier to target. The DWP,may say oops it was a mistake, but, we have discovered x, y ,z.   Voila, done up again

Free PIP, ESA & UC Updates!

Delivered Fortnightly

Over 110,000 claimants and professionals subscribe to the UK's leading source of benefits news.

 
iContact
We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.