The UK government has announced the introduction of a new Bill aimed at aggressively curbing fraud within the social security system, expected to generate savings of £1.6bn over the next five years.
This move, designed to extend and modernize the Department for Work and Pensions’ (DWP) capabilities, comes in response to nearly £10bn being lost annually due to fraud and errors—an issue exacerbated since the pandemic began, with £35bn in taxpayer funds misappropriated.
With fraud becoming increasingly sophisticated, the new legislation will empower the DWP with enhanced investigative capabilities, including new powers of search and seizure to better control and address criminal activities defrauding the state.
Furthermore, the Bill will enable DWP to recover debts from individuals who are financially able but have previously evaded repayments, thereby introducing a fairer debt recovery process.
The proposed legal powers also include provisions requiring banks and financial institutions to share data that could indicate potential overpayments of benefits, aiming to streamline the identification and prevention of fraud. To ensure the protection of vulnerable customers, the Bill will incorporate several safeguarding measures.
These include high-standard training for staff on the use of new powers and the implementation of new oversight and reporting mechanisms to monitor the use of these powers. Importantly, the DWP will maintain strict confidentiality with no direct access to individuals’ bank accounts or sharing of personal data with third parties.
Additionally, the government plans to introduce a Code of Practice, which will be open for consultation during the Bill’s passage, providing further assurances on the safe and ethical use of the new powers. This legislative initiative underscores the government’s strong stance against fraud, error, or waste in public services as part of its broader commitment to protecting taxpayer money.
Further details about the Bill’s specifics will be disclosed upon its formal introduction to Parliament.
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