The UK government has announced its latest efforts to tackle benefit fraud, introducing the Fraud, Error and Recovery Bill in Parliament. Spearheaded by Work and Pensions Secretary Liz Kendall, the proposed legislation aims to recover £1.5 billion over the next five years, reducing the burden of fraudulent claims on taxpayers.
The crackdown will target individuals who owe welfare debts, allowing the Department for Work and Pensions (DWP) to recover funds directly from claimants’ bank accounts and impose stricter penalties, including driving licence suspensions for noncompliance.
Measures
The proposed bill includes a range of measures designed to strengthen the government’s ability to combat fraud:
- Bank Account Investigations: The DWP will be able to access bank information to identify claimants who have the means to repay debts but refuse to do so.
- Driving Licence Suspensions: Individuals who owe over £1,000 in welfare debts and repeatedly ignore repayment requests could have their licences suspended for up to two years.
- Covid Fraud Focus: The bill extends the time limit for civil claims against Covid-related fraud from six to twelve years, granting more time to recover funds from fraudulent PPE contracts and other schemes.
- Search Warrants: The Public Sector Fraud Authority will be empowered to obtain warrants to search premises, seize evidence, and assist the police in fraud investigations.
These measures aim to tackle the estimated £10 billion annual cost of benefit fraud, with a broader target of saving £8.6 billion in welfare spending over the coming years.
Universal Credit Under Scrutiny
A significant focus of the bill will be on Universal Credit claimants who fail to return overpayments or who exceed asset limits. Currently:
- Claimants cannot have more than £16,000 in savings or assets, including homeownership, to qualify for Universal Credit.
- Those with savings between £6,000 and £16,000 may still qualify for partial benefits if they can demonstrate financial need.
Accounts holding over £16,000 could be flagged for investigation, ensuring claimants meet eligibility criteria.
Expert Reactions
The government’s proposals have sparked mixed reactions:
- Public Opinion: A recent YouGov survey indicates that 64% of the public supports the crackdown, though concerns about privacy and fairness persist.
- Privacy Campaigners: Groups like Big Brother Watch have criticized the bill as “an assault on the welfare system” rather than a meaningful fraud crackdown. Over 270,000 people have signed a petition opposing the measures.
- Anti-Poverty Charities: Some worry that the bill may disproportionately affect vulnerable individuals who rely on benefits for survival.
While proponents argue the bill ensures fairness and accountability, critics fear it may stigmatize claimants and create undue hardships for those in genuine need.
Challenges
This is not the first attempt to introduce stricter fraud measures. A similar proposal failed to pass before the July election in 2023. However, the government is optimistic that the new bill, with expanded powers for the DWP and Public Sector Fraud Authority, will succeed in tackling longstanding issues.
Covid Fraud
The government is also using this opportunity to address fraud linked to Covid-era spending. Millions were lost to fraudulent PPE contracts and schemes during the pandemic. By doubling the time limit for civil claims and granting additional powers to investigators, the government hopes to recover more taxpayer money.
The Fraud, Error and Recovery Bill represents a significant step in the UK’s effort to curb benefit fraud, but its success will depend on balancing enforcement with compassion for vulnerable citizens.
SOURCE – LINK
FAQs
What is the Fraud, Error and Recovery Bill?
A proposed law to tackle benefit fraud and recover £1.5 billion.
How will bank accounts be investigated?
The DWP will access bank info to identify claimants with excess funds.
Who may lose their driving licence?
Claimants owing over £1,000 who refuse to repay welfare debts.
What are the Covid fraud measures?
The bill extends civil claim limits and grants new investigative powers.
What’s the public reaction to the bill?
64% support it, but privacy and fairness concerns persist.
