The UK’s Labour government has introduced the Fraud, Error, and Debt Bill aimed at combating fraud by mandating financial institutions to share data that may indicate potential benefit overpayments.
The Bill is projected to save £1.6 billion over the next five years in fraud prevention efforts. It will empower the Department of Work and Pensions (DWP) to tackle fraud within the social security system more effectively, including the ability to search and seize evidence of suspected fraud and recover debts from individuals who could repay but have not done so.
To ensure these new powers are used responsibly, a Code of Practice will be established to prevent misuse.
However, the Bill has sparked controversy among the British public, with some referring to it as the “snooper’s charter.” Critics express concerns similar to those raised about the Data Protection and Digital Information Bill, previously introduced by the former government, which allowed welfare officials to access users’ bank account data. Worries have been voiced regarding data privacy, especially for older and disabled claimants.
In response to these concerns, the DWP stated, “Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms to monitor these new powers. The DWP will not have access to people’s bank accounts and will not share their personal information with third parties.”
This legislation fulfills the government’s manifesto commitment to protect taxpayers’ money and demonstrates a zero-tolerance stance on fraud, error, or waste within public services, including the social security system.