BRITONS on benefits will be checking their bank accounts every month as part of a major government crackdown on fraud.
The main amendment to the law should be confirmed at the autumn statement on November 22.
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Britons receiving benefits will have their bank accounts scanned every month as part of a government crackdown on fraudCredit: Getty
It is part of a massive drive to reduce the number of Britons on unemployment benefits, currently 5.4 million.
A Government source said: “Every pound stolen by fraudsters could be spent on our public services or those most in need.
“DWP Secretary Mel Stride sees it as deeply wrong that benefit fraud is not being played by the rules and is determined to deliver fairness for taxpayers.”
Currently the Department for Work and Pensions has to make individual requests to access bank accounts if it suspects fraud.
Under the new laws, banks will be mandated to conduct monthly checks for signs of suspicious activity.
In a recent public debate on the plans, more than half (52%) of the 2,127 respondents found the idea of frequent bank account checks acceptable.
Meanwhile, 62% saw fraud and error in the welfare system as a big problem, while 18% saw it as a very big problem and only 3% saw it as no problem at all.
Along with announcing a crackdown on benefits fraud on November 22, Chancellor Jeremy Hunt will announce any changes to tax and spending on public services, such as the NHS and schools.
Mr Hunt warned Britons not to expect big rate cuts because inflation had not fallen enough.
But in the final weeks leading up to the announcement, the chancellor has faced growing calls from Tory MPs to change tack.
They worry that without major tax cuts, the party will take a big hit in next year’s general election.
What changes do I need to report to the DWP?
Anyone receiving benefits who has a change in circumstances should notify the DWP.
The change could mean adjusting the amount of money you get.
If you don’t report the change, you could be required to pay back any extra money you receive – or in the worst case scenario, face a civil penalty or criminal prosecution.
Changes you must report include:
- finding or completing work, or working different hours
- your income goes up or down
- people moving to or leaving where you live (for example your partner, child or tenant)
- have a child
- start or stop caring for someone
- marriage or divorce, or the commencement or termination of a civil partnership
- you plan to go abroad for any length of time
- going to a hospital, home for the elderly or sheltered accommodation
- any changes in your medical condition or disability
How you can report a change of circumstances depends on your benefit.
If you’re on Universal Credit, which will soon replace older benefits like income support and tax relief, you should report the change in your diary or talk to your work coach.
What if I am asked to return the money?
If you are required to make a repayment, this will be done in a number of ways.
Turn2Us, a charity, says it can do this:
- Making deductions from your benefits
- Exemption from benefits owed to you
- Taking the amount directly from your paycheck
- Obtaining a court order for debt recovery
The amount taken will depend on how much you owe and whether you are still receiving benefits.
You can ask the DWP to reduce the amount you pay back each month.
The DWP can take you to court if you don’t repay.
If you can’t pay, you can contact Citizens’ Advice for help.
If you think you have not been overpaid and the refund claim is in error, you can ask the DWP to look again.
Turn2Us says that any letter notifying you of an overpayment should include the following information:
- How much you were overpaid each week
- For which period you were overpaid
- The total amount that was overpaid
You can get free advice and support for appealing a decision from organizations such as Citizens Advice and Benefits and Work.
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Source: HIS Education