The Labour Party is set to reintroduce the so-called “snooper’s charter” proposals scrapped under the Tory Government as part of a major drive to crackdown on benefit fraud.
Under the plans, welfare officials will be able to request information from claimants’ bank accounts as part of a fraud, error and debt bill that will require banks and other financial institutions to share data that may help identify benefit fraud.
The Government has said the new bill will include measures to protect vulnerable claimants and safeguards to ensure the new powers are not misused by the Department for Work and Pensions (DWP).
However, privacy campaigners have expressed concern over the plans, warning ministers against adopting legislation that invades privacy and disproportionately affects older and disabled claimants.
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Responding to concerns, the DWP said: “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.”
It added: “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.”
The DWP is under pressure to tackle huge losses to benefit fraud and error, which more than doubled since the pandemic to a staggering £9.7billion in 2023-24.