DWP’s New Powers to Check Bank Accounts Spark Major Privacy Concerns
There’s a lot of buzz right now about the Department for Work and Pensions (DWP) gaining new powers to check bank accounts—and it’s causing serious concerns. This new bill, called the Fraud, Error and Debt Bill , is moving through Parliament, and if it passes, it will allow the DWP to request financial data from banks to detect benefit fraud. But here’s the thing—it’s not just targeting benefit claimants. It could potentially affect everyone .
Critics are sounding the alarm, saying this could lead to an unprecedented level of surveillance. Legal experts and privacy advocates, like those at Big Brother Watch , are warning that these powers go far beyond just catching fraudsters. If you’re receiving benefits and have appointed someone—a parent, a guardian, a landlord—to manage them on your behalf, their financial details could also be scrutinized. This has raised serious questions about how far-reaching and intrusive the new rules could be.
Labour is pushing this bill as part of the “biggest fraud crackdown in a generation,” arguing that it will help recover £1.5 billion over the next five years. The DWP insists that safeguards will be in place to prevent misuse and that staff will be trained to handle this sensitive data appropriately. But despite these assurances, many experts are uneasy about the lack of a clear oversight plan before the bill comes into effect.
Also Read:- Collingwood's Age No Barrier as Magpies Eye 2025 Glory
- CBS Cancels Two FBI Spinoffs—What’s Next for the Franchise?
One of the most controversial aspects is the Eligibility Verification Measure , which gives the DWP power to request bank data to confirm whether someone meets the criteria for benefits like Universal Credit, Pension Credit, and Employment and Support Allowance . For example, Universal Credit recipients aren’t supposed to have more than £16,000 in savings. With these new powers, banks could be required to share financial details to check for violations—essentially giving the government a backdoor view into people’s finances .
Experts in financial policy have described these measures as "incredibly intrusive," comparing them to tactics usually reserved for criminal investigations. There’s a growing concern that this could turn into a blanket surveillance tool , allowing government agencies to pry into financial records without strong legal restrictions. Some have even likened it to “King Henry VIII” powers , where ministers can make sweeping changes without full parliamentary approval .
The DWP, of course, denies any overreach. A spokesperson has defended the bill, stating that it only applies to those suspected of wrongly receiving benefits. They also claim that it does not involve direct access to bank accounts—only requests for limited data. However, this assurance hasn’t stopped privacy advocates from questioning just how much power the government should have over personal finances.
With public concerns growing, many are calling for a proper code of practice to ensure that these new powers aren’t abused. But as things stand, the government says it can’t finalize any safeguards until the bill is passed—meaning people are being asked to trust that protections will come after the law is in place.
So, where does this leave us? While tackling fraud is important, the fear is that these new rules could open the door to mass surveillance —with ordinary people caught in the net. Whether this bill is a necessary tool or a step too far remains to be seen, but one thing is certain: this debate is far from over .
Read More:
0 Comments