BANKS will be granted powers to snoop on pensioners’ accounts and share data with the government as part of a huge fraud crackdown.
The accounts of people claiming benefits such as Pension Credit will be closely watched for fraud.
AlamyThe bank accounts of pensioners will be monitored in case they are at risk of fraud[/caption]It comes as part of a new Public Authorities (Fraud, Error and Recovery) Bill, which is set to return to the House of Lords next week.
The legislation will force banks to flag any suspicious activity to the Department for Work and Pensions (DWP).
And it is hoped the move will help save £9.6billion by 2030.
Financial institutions will have to share data with the DWP and not be allowed to tell their customers, according to a report first published in The Telegraph.
In cases of fraud or error, ministers will be able to request for the money to be paid back.
Under current rules, banks must report suspected fraudulent activity, such as money laundering, to the National Crime Agency.
Lenders are also not responsible for keeping an eye on benefit fraud or overpayments.
It is worth noting that DWP can’t actually access people’s bank accounts or any information on how claimants spend their money.
The legislation will require banks to share limited information with DWP to help identify incorrect benefit payments.
This information sharing happens without banks or DWP suspecting anyone of being at fault.
Financial institutions are specifically prohibited from sharing transactional information with DWP, and these rules will stay in place.
A DWP spokesperson told The Sun: “The Fraud Bill is set to save £1.5billion over the next five years, which together with wider reforms will save £9.6billion by 2030, according to OBR estimates.
“It has numerous safeguards in place and DWP will not have access to benefit claimants’ bank accounts.”
The DWP has previously said the new legislation will be the “biggest fraud crackdown in a generation”.
Last year, an estimated £7.4billion was lost to benefits fraud – around 2.8% of total welfare spending.
How do you report a change in circumstances for other benefits?
If you claim Universal Credit or other benefits it is important to keep the DWP up to date to avoid any confusion about your earnings.
For example, if you do not report a change in circumstances you could be accused of committing fraud and be asked to pay any money you were overpaid back
You can pay back the overpayment in full or set up regular monthly payments.
If you need help managing repayments, you can contact the DWP Debt Management contact centre on 0800 916 0647.
If you are found to have been overpaid due to your own negligence or error, you may also have to pay a £50 penalty.
If you’re suspected to have committed benefit fraud, you’ll be contacted by the DWP, HMRC, the Defence Business Services or your local authority.
If you are found to have committed benefit fraud, one or more of the following may happen:
you’ll be told to pay back the overpaid money you may be taken to court or asked to pay a penalty (between £350 and £5,000) your benefits may be reduced or stoppedMore information on this can be found via www.gov.uk/benefit-fraud.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
Hence then, the article about banks to snoop on pensioner accounts in huge dwp fraud crackdown was published today ( ) and is available on The Sun ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( Banks to snoop on pensioner accounts in huge DWP fraud crackdown )
Also on site :