DWP given ‘direct access to bank accounts’ in new powers from Labour | Personal Finance | Finance
The DWP is being handed tough new powers to be able to go into people’s bank accounts and take money without warning in an announcement by Chancellor Rachel Reeves in today’s Autumn Budget.
The Labour Chancellor delivered her first Budget today in which she announced that the Department for Work and Pensions will be handed much more power to clamp down on benefits cheats by taking money straight back out of people’s bank accounts.
She told the Commons that the government is taking ‘three steps’ to reduce the country’s benefits bill including the bank account powers.
She told the Commons: “Today, I am also taking three steps to ensure that welfare spending is more sustainable.
“First, we inherited the last government’s plans to reform the work capability assessment. We will deliver those savings as part of fundamental reforms to the health and disability benefits system that the Work and Pensions Secretary (Liz Kendall) will bring forward.
“Second, I can today announce a crackdown on fraud in our welfare system often the work of criminal gangs. We will expand DWP’s (Department of Work and Pensions) counter-fraud teams using innovative new methods to prevent illegal activity and provide new legal powers to crackdown on fraudsters, including direct access to bank accounts to recover debt.
“This package saves £4.3 billion a year by the end of the forecast.”
She added that the government will also look at tackling the causes of dependence on benefits and will try to push people back into full time work using ‘health, education and welfare’.
She added: “Third, the Government will shortly be publishing the “Get Britain Working” White Paper tackling the root causes of inactivity with an integrated approach across health, education and welfare.
“And we will provide £240 million for 16 new trailblazer projects targeted at those who are economically inactive and most at risk of being out of education, employment or training to get people into work and reduce the benefits bill.”
