DWP uncovers 63,000 claimants violating bank monitoring rules

STORY: A test by the Department for Work and Pensions (DWP) showed that many people getting benefits were not following the rules. The DWP wants to use new powers to look at people's bank accounts. This power, called "Third Party Data Gathering" or "data sharing", will make banks share information with the DWP. This information can show if someone is not eligible for the benefits they are getting, like having too much money saved. The DWP says they will only get "limited and relevant" information to check if benefits are being paid correctly. In a trial in 2023, the DWP asked two banks to check the accounts of people getting Universal Credit, Pension Credit, or ESA. They found that 60,000 accounts had more money than allowed for benefits. The average balance in these accounts was £50,000, and half were joint accounts. Also, 3,000 accounts were at risk of breaking the rule about going abroad for too long. The new rules are part of a bill called the Data Protection and Digital Information Bill. It is being reviewed in the House of Lords. If it becomes law, it will start in 2025 and be fully in place by 2030/2031. Benefit claimants need to follow DWP rules, like telling them if they will be away for a long time or if they are looking for jobs while abroad. If you get Universal Credit, you must be in the UK when you apply. You can travel later that day or return from a holiday on the same day. You can go on holiday for up to a month, but you must keep looking for jobs as agreed when you applied. If you get PIP, you need to tell them when you are leaving the country, how long you will be gone, where you are going, and why. Going abroad for more than four weeks could affect your benefits. The DWP found many people not following the rules in the test. Some were living abroad while getting UK benefits or going on long holidays. The most savings allowed for benefits are £16,000 for Universal Credit and ESA, and £10,000 for Pension Credit. The DWP can only check accounts if they suspect fraud or when verifying a benefit claim. There are limits on how long you can stay abroad while getting benefits. In the test, most accounts monitored were from Universal Credit claimants. If someone had too much money saved, the DWP took action like stopping benefits or investigating. If someone was abroad for too long, benefits were stopped. The new rules aim to make sure benefits are paid correctly and to stop fraud.