By james art Chancellor Rachel Reeves has said she will crack down on fraud in the UK’s welfare system as part of reforms to ensure welfare spending is “more sustainable”.
She told the Commons: “Today I am also taking three steps to ensure welfare spending is more sustainable.
“Firstly, we inherited the previous government’s plans to reform the Work Capability Assessment. We will deliver these savings as part of fundamental reforms to the health and disability benefits system that the Work and Pensions Secretary (Liz Kendall) will be proposing.
“Secondly, today I can announce a crackdown on fraud in our welfare system, which is often the work of criminal gangs. We will expand the DWP’s (Department for Work and Pensions) anti-fraud teams, using innovative new methods to prevent illegal activity and provide new legal powers to pursue fraudsters, including direct access to bank accounts for debt recovery. This package saves £4.3 billion a year by the end of the forecast.
“Thirdly, the Government will soon publish the Make Britain Work White Paper, which tackles the root causes of inactivity with an integrated approach to health, education and social care.
“And we will provide £240m for 16 new pioneering projects targeting those who are economically inactive and most at risk of being out of education, work or training to get people into work and reduce the benefits.’
Addressing the Fraud, Error and Debt Bill last month, the DWP said: “Staff will be trained to the highest standards in the correct use of any new powers and we will introduce new oversight and reporting mechanisms to monitor these new powers . The DWP will not have access to people’s bank accounts and will not share their personal information with third parties.
“This legislation fulfills the Government’s manifest commitment to protecting taxpayers’ money and demonstrates the Government’s commitment not to tolerate fraud, error or waste anywhere in public services, including the social security system.”
However, campaigners have previously criticized the plans, saying they “deprive millions of the presumption of innocence” and add to the “criminalisation” of benefits claimants.
Big Brother Watch’s Silky Carlo said: “Everyone wants fraud to be addressed and the government now has strong powers to investigate suspects’ bank statements.
“But forcing banks to continuously spy on benefit recipients without suspicion means that not only will millions of disabled people, pensioners and carers be actively spied on, but the entire population’s bank accounts are likely to be monitored without good reason.”
“A financial spy charter aimed at automating suspicion of our nation’s poorest is intrusive, unjustified and risks Horizon-style injustice on a massive scale.”