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.

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  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Heaven forbid that we ask yhe banks to pay back the bailout money rather than pay shareholders, or monitor the accounts of tax avoiders and money launderers... 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    What annoys me is that the savings limit is £6000-£16000 on a sliding scale, and this has been the case for several years.  Surely it should have been raised with inflation? But they love to freeze things like this as it gains them money over time. 

    £6000 is nothing these days, a boiler repair, car repair and new washing machine could easily take half of that.  Then if you get a section 21 due to your landlord selling, you might not have enough for a deposit and rent on a new place, suddenly you could be facing homelessness.

    They need to raise this limit quite a bit, as it's unfair to keep it at the same level for years. 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Alex I totally agree.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Alex My garage roof needs replacing - well over £4000.
      My house needs a new roof - no idea.
      There is no scope to save for emergencies.
      All these amounts should be raised in line with inflation.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    This would be a good time to go back to good old cash again cash in the wallet cash in the safe then nobody knows anything like the old days 
    • Thank you for your comment. Comments are moderated before being published.
      · 10 months ago
      @DarrenSharrocks Bang goes amazon, bang goes online shopping, if people want to fight back then let's all withdraw the money every month apart from bill money where it can't be paid another way, and bring back a cash society. Sod the gov/dwp its our way to fight back. We can sign petitions all day and it's a good thing but this has passed through to the house of Lords already. I say we all come together and fight for our rights. 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @M shirker If this goes through people will start using cash again and bang goes amazon for you. 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Are they going to check under the mattresses as well! C'mon.

    Banks have duty of confidentiality with regard to the financial information of their customers, whether they're on benefits or not.

    Banking secrecy standards prohibit the disclosure of client information to third parties without consent or an accepted criminal complaint.

    Banking secrecy, alternatively known as financial privacy, banking discretion, or bank safety, is a conditional agreement between a bank and its clients. 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @A Yet this is what the new government bill will seek to change and override, surely. It will fundamentally alter the confidentiality arrangement of bank and client. That will go out the window leaving DWP with powers to demand of the banks to view any account in receipt of any means tested benefit.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @LISA101 I have read this, too. They call it 'search and seize'. The whole thing is abhorrent and socially insulting!
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @A Isn't giving DWP staff powers to search homes without a warrant another project? I think they want to introduce powers of arrest, too. 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @A Presumably the new law would trump this??
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    What is the capital limit? Is it £6000?
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Michael DWP want banks to report figures above the savings limit or ‘unusual’ activity (large amounts dropping into account) if you’ve only got £250 say in a savings account that won’t get looked at 
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @Carol K It is but some people have large sums disregarded as for instance they were for medical compensation, or benefits back payments when the dwp made errors. Over £5k and it is in perpetuity.
      How would the banks know this?
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    In all my years on this earth I've never been more afraid,less happy and so desperately worried for the future than I have been this year alone. 
    And when the 'If you've nothing to hide'clan raise their heads and voice those words I shall be saying this, Us today ,you next. Its not a matter of hiding anything it's a matter of principle and our objections are valid.
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @The Dog Mother I agree. Only I’d say ‘if I have nothing to hide why am I being investigated?’ If I was doing something wrong I would say ‘it’s a fair cop’ but if I’m doing nothing wrong then it’s really, really worrying to think somebody is going to be poking around in my affairs just because they can…
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    What do you with a government department with a long track record of incompetence, callous indifference and contempt for evidence? Why, the answer is obvious - give it sweeping powers to let it do what it likes. What could possibly go wrong?

    If only the government put such effort into fighting tax evasion, which costs the country vastly more than benefit fraud and error. But that would involve taking on people with the money and power to push back. And we obviously can't have that.
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Dwp runs the uk. Because what they say goes, no matter how far reaching, intrusive or down right vindictive it may be. I fear what comes next, what's up their sleeve,Because they are always cooking up something. 
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    thought i lived in UK not china, this should only be for extreme cases of suspected fraud,  there obviously doing this so they can put that britcoin thing a centralised crypto currency so the government can control what you spend and see what you spend money on.

    we are losing our freedoms everyday
  • Thank you for your comment. Comments are moderated before being published.
    · 11 months ago
    Pensioners in receipt of Pension Credit, Housing Benefit & Council Tax, etc 

    are also under surveilance



    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @LISA101 Meanwhile in Westminster they've all got their snouts in the trough.....whilst being evilly mean to the most vulnerable in our society, the sick and disabled.  Iain Duncan Smith and 'Call me Dave' Cameron both claimed sickness benefits for family members because they could.  How's about them being done for fraud and handed custodial sentences.  They certainly didn't NEED the money they claimed did they?!
    • Thank you for your comment. Comments are moderated before being published.
      · 11 months ago
      @clearwater Should anybody be under surveillance without grounds for suspicion is the question. 

      Meanwhile inn Westminster....

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