In a significant move to combat benefit fraud, Prime Minister Rishi Sunak has announced that the Department for Work and Pensions (DWP) will be granted new powers to conduct searches, make arrests, and impose civil penalties on suspected offenders. These enhanced powers will align the DWP with the investigatory capabilities of tax inspectors at HMRC, signaling a more stringent approach to tackling fraud within the welfare system.
The Fraud Bill, which will be introduced in the next Parliament, will provide the DWP with a wide range of investigatory tools. These include the ability to conduct searches, seize assets, and make arrests, mirroring the powers exercised by HMRC in its efforts to combat tax fraud. Additionally, the Data Protection and Digital Information Bill will enable the DWP to access banking information without requiring suspicion of fraudulent activity, broadening its capacity to gather evidence.
Previously, the DWP was only able to request bank account information if there were reasonable grounds to suspect fraud. The new powers granted by the Data Protection and Digital Information Bill will allow the DWP to proactively identify and investigate instances of benefit fraud, regardless of whether there is an initial suspicion of wrongdoing.
Prime Minister Sunak emphasized the government’s commitment to preventing the exploitation of the welfare system, stating that fraudsters should not be allowed to take advantage of the generosity and compassion of the British people. He highlighted the successful crackdown on individuals wrongfully claiming Universal Credit and the significant savings that will be achieved by accessing data from third parties like banks.
The DWP will also utilize modern technology, including Artificial Intelligence, to strengthen its detection and prevention capabilities. The aim is to prevent the exploitation of the welfare system and protect the interests of hardworking taxpayers who fund it. The Fraud Bill will also introduce civil penalties that can be applied to a wider range of fraudsters, sending a clear message that abusing the welfare system will not be tolerated.
The Prime Minister acknowledged that when members of the community perceive individuals gaming the system, it erodes support for the very principle of the welfare state. The enhanced powers granted to the DWP underscore the government’s determination to safeguard the integrity of the welfare system and ensure that those who genuinely need assistance receive it while those who seek to exploit it are held accountable.
