DWP investigators to be given extra powers on top of monitoring bank accounts

The Prime Minister has committed to giving the Department for Work and Pensions (DWP) new powers to carry out searches and arrests during investigations of benefit fraud.

Rishi Sunak last week said he will introduce the new Fraud Bill in the next Parliament.

New powers will include searches, seizures and arrests, as well as civil penalties handed out to more offenders suspected of benefit fraud. It means the DWP will be given the same investigatory powers as the tax inspectors at HMRC.

The measures will be introduced through the Data Protection and Digital Information Bill which will enable DWP to receive information from third parties such as banks. Under current rules, the DWP is able to request bank account holders’ banking transaction details if there is reasonable grounds to suspect fraud.

However, new powers through the Data Protection and Digital Information Bill would allow the DWP to access banking information without suspicion of fraudulent activity. The PM said: “We cannot allow fraudsters to exploit the natural compassion and generosity of the British people.”

He continued: “We’ve already cracked down on thousands of people wrongly claiming Universal Credit, including those not reporting self-employed earnings or hiding capital and we’ll save the taxpayer £600 million by legislating to access vital data from third parties like banks.

“We’re using all the developments in modern technology, including Artificial Intelligence to crack down on exploitation in the welfare system that’s taking advantage of the hardworking taxpayers who fund it. We’re preparing a new Fraud Bill for the next Parliament which will align DWP with HMRC so we treat benefit fraud like tax fraud with new powers to make seizures and arrests.”

The PM added: “We’ll also enable penalties to be applied to a wider set of fraudsters through a new civil penalty. Because when people see others in their community gaming the system that their taxes pay, it erodes support for the very principle of the welfare state.”