New measures include the authority to examine personal bank accounts, issue £300 penalties, and seize assets from claimants
The Department for Work and Pensions (DWP) is preparing to take on significant new powers to address benefit fraud.
The DWP stated it is “focused” on reducing fraud and mistakes within the benefits system, which currently results in an estimated annual cost of nearly £10bn to taxpayers.
These powers are part of the proposed Fraud, Error and Debt Bill, now under debate in Parliament.
Andrew Western, a DWP Minister, highlighted several upcoming measures designed to “stop fraud at the outset, based on patterns and case types we have observed”.
Officials will be permitted to access information on bank accounts linked to benefit claims, directly retrieve funds from accounts to reclaim overpayments, and seek court approval to confiscate property or valuables.
Additionally, training sessions will be provided to Case Managers and Healthcare Professionals to strengthen responses when potential fraud is suspected, such as cases involving forged paperwork.
The changes aim to address the £90 million lost to fraud and errors in the Personal Independence Payment system during the 2023/24 financial year.