The Bill is expected to save £1.6 billion over the next five
years and will extend and modernise DWP's powers to stop
fraud in its tracks, recover money lost to fraud and protect
vulnerable customers from racking up debt.
Fraud and error in the social security system currently costs the
taxpayer almost £10 billion a year and since the pandemic a total
of £35 billion of taxpayers' money has been taken away from those
who need it most.
The nature of fraud has also become more sophisticated, meaning
without new legal powers, DWP cannot properly
keep pace with the changing nature of fraud to tackle it robustly
enough.
This legislation will give DWP powers to:
- Better investigate suspected fraud and new powers of search
and seizure so DWP can take greater
control investigations into criminal gangs defrauding the
taxpayer.
- Allow DWP to recover debts
from individuals who can pay money back but have avoided doing
so, bringing greater fairness to debt recoveries.
- Require banks and financial institutions to share data that
may show indications of potential benefit overpayments
The Bill will also include safeguarding measures to protect
vulnerable customers. Staff will be trained to the highest
standards on the appropriate use of any new powers, and we will
introduce new oversight and reporting mechanisms, to monitor
these new powers. DWP will not have
access to people's bank accounts and will not share their
personal information with third parties.
We will also bring forward a Code of Practice which will be
consulted on during the passage of the Bill to provide further
assurance on the safe use of the powers.
This legislation delivers on the government's manifesto
commitment to safeguard taxpayers' money and demonstrates the
government's commitment to not tolerate fraud, error or waste
anywhere in public services, including the social security
system.
Further details on the scope of the legislation will be set out
when the Bill is introduced.
