To ask the Secretary of State for Work and Pensions, whether his Department plans to use the proposed powers under the Data Protection and Digital Information Bill to monitor the bank accounts of (a) people suspected of fraud and (b) all people who claim means-tested benefits.

The powers sought under the Bill would not give DWP direct access to citizen’s bank accounts.

What this power will do is require designated third parties to look within their own data and provide relevant information to DWP that may signal where some claimants may not meet the eligibility criteria for the benefit they are receiving. This data may signal fraud or error and require a further review by DWP (through business-as-usual processes) to determine whether incorrect payments are being made. The power covers all DWP benefits and payments, including those that are means tested or have residency requirements, but it will initially be focussed on benefits where there is a significant fraud challenge. No personal information will be shared by DWP and only the minimum amount of information on those in receipt of DWP payments will be provided to the Department so we can identify those people whose claims have matched the criteria we have set.

With fraud becoming a growing problem, accounting for over 40% of all crime, the welfare system is not immune to this. It is vital that the Government takes measures to address this issue and ensure the right support is provided to the right people.

We expect this measure to save up to £600m in the next five years.