DWP to gain powers to demand benefit claimants bank data fraud bill

The Department for Work and Pensions is set to gain expanded investigatory powers under the Public Authorities Fraud, Error and Recovery Bill that would allow the department to request financial information from pensioners and other benefit claimants’ bank accounts as part of fraud investigations. The legislation is due to return to the House of Lords this month and, if approved, is expected to take effect from April 2026. The measures are aimed at reducing overpayments and recovering funds identified as lost to fraud.

Under the proposed law, financial institutions would be required to flag suspicious activity and provide bank statements or other requested financial information to the DWP when the department is investigating a claimant. Officials say the DWP would not have direct access to accounts but would be able to recover funds from accounts of people found to have committed benefit fraud. The Bill also contains provisions to give organised-crime investigators within the department powers to apply for search warrants to seize electronic evidence such as computers and smartphones, and to extend the time limit for civil claims relating to Covid-era fraud from six to twelve years.