DWP Announces Start Date for Bank Account Checks Targeting Three Key Benefits
DWP to Initiate New Anti-Fraud Measures in 2026
UK Government Strengthens Fraud Prevention with New Legislation
The Department for Work and Pensions (DWP) has announced the introduction of new legislative measures aimed at curbing benefit fraud, set to commence in April 2026. The Public Authorities (fraud, error and recovery) Bill is expected to safeguard taxpayers, generating savings of approximately £1.5 billion over the next five years.
Focus on Universal Credit and Pension Credit
As part of the strategy, the DWP will prioritize scrutiny on universal credit, pension credit, and employment and support allowance (ESA). The rollout will adopt a “test and learn” methodology to ensure these new anti-fraud mechanisms are implemented effectively. Officials are collaborating closely with industry stakeholders to establish codes of practice and provide comprehensive guidance.
Critics Voice Privacy Concerns
The new law has sparked controversy among privacy advocates. Organizations such as Disability Rights UK, Age UK, Privacy International, Child Poverty Action Group, and Big Brother Watch have expressed apprehension over what they deem “disproportionate” financial surveillance capabilities. These groups warn that such measures could precipitate events reminiscent of the Post Office Horizon scandal, affecting vulnerable groups like pensioners and disabled people.
DWP Defends New Oversight Measures
In response to the criticisms, a DWP spokesperson has asserted the integrity and robustness of the new measures, promising stringent oversight and rigorous training for their staff. The spokesperson emphasized that any fraud detection flagged by banks will be cross-verified by human staff to ensure due process.
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