The Department for Work and Pensions (DWP) has updated its strategy to intensify the fight against benefit fraud, which could involve inspecting individuals' bank accounts to ascertain their capacity to repay loans.
The House of Commons has recently debated legislative changes, a part of which allows for the possibility of retrieving funds directly from the bank accounts of those found guilty of fraud and even putting driving licences on hold.
These proposals received the green light at the third reading of the Public Authorities (Fraud, Error and Recovery) Bill on Tuesday, April 29. This advancement means Parliament is edging closer to approving what has been described by detractors as the "biggest ever crackdown on fraud against the public purse", with some labelling it as "Orwellian mass surveillance."
READ MORE: Coronation Street fans only just realising Sue Cleaver was married to soap co-star
READ MORE: Coronation Street fans only just realising where they’ve seen Mick Michaelis actor before
Now set to be scrutinised in the House of Lords, the controversial Bill aims to clamp down on multibillion-pound benefit fraud by enabling the DWP to claim money straight from the offenders' bank accounts and to examine bank statements of those suspected of possessing adequate funds to settle welfare debts but are choosing not to.
Additionally, the courts could have the authority to suspend the driving licences of fraudsters through the application of the DWP, particularly when they owe welfare debts exceeding £1,000 and continually neglect demands for repayment, reports the Manchester Evening News.
A faction of Labour members broke ranks to vote for an amendment aimed at limiting the Government's authority to check someone's entitlement to welfare benefits, while the Liberal Democrats cautioned that the Bill could lead to "Orwellian levels of mass surveillance of those who have means-tested benefits."
Addressing Parliament during the third reading, Work and Pensions Secretary Liz Kendall stated in the Commons: "Delivering our plan for change means ensuring every single pound of taxpayers' money is wisely spent and goes to those in genuine need.
"That is what this legislation will help deliver, with the biggest ever crackdown on fraud against the public purse."
On the opposite bench, Shadow work and pensions secretary Helen Whately acknowledged that the Conservatives "support many of the measures" within the proposed Bill but expressed her "disappointment" over their amendments being dismissed by the Government.
These amendments had included the suggestion of establishing precise offences and severe prison terms to impinge on "sickfluencers" who exploit social media to aid fraudulent claims for benefits.
Ms Whately interrogated: "Why should we tolerate people using social media platforms to help others commit fraud, helping people cheat the tests which are there so support goes to those who need it?
"Why should someone who has committed fraud be able to keep their high-end television or luxury car just because they've spent their ill-gotten gains before the department gets to them?"
The Government has been accused of siding with "sickfluencers" by an MP who claims Labour is not doing enough to tackle fraud and the exploitation of social media for ill-gotten gains.
During a parliamentary session, MPs discussed the existing powers to address the issue of "sickfluencers". Labour MP Neil Duncan-Jordan (Poole) pushed for a vote on his amendment to the Bill, aiming to limit the Government's ability to scrutinise benefit claimants' financial records.
The proposed amendment stipulated that the Government should only investigate accounts of individuals it "has reasonable grounds to suspect has committed, is committing or intends to commit" an offence. Despite gaining support from 10 Labour colleagues, the amendment was defeated by a majority of 153, with 238 votes against and 85 in favour.
Prior to the vote, Mr Duncan-Jordan expressed his concerns: "The Bill rightly seeks to tackle organised crime and online fraud, but also worryingly ushers in dangerous new powers compelling banks to trawl through financial information."
He further commented on the potential impact of the legislation: "It is the very poorest in our society which are going to be affected most by this legislation. So banks will be able to trawl for financial information even where there is no suspicion of wrongdoing. That's the key point in this debate."
Work and pensions minister Andrew Western countered by stating that Mr Duncan-Jordan's amendment would "undermine" the new power intended to verify individuals' eligibility for benefits.
Mr Western explained: "We do require this power because it will enable better data sharing between the private and public sector to help check claimants are meeting the criteria for their benefits and to detect incorrect payments at an earlier stage before any suspicion of wrongdoing has arisen."
He added, "It is not a power to be used to respond to suspected fraud. Information will not be shared with the DWP under the assumption that a claimant is guilty of any wrongdoing. The DWP must look into why the account has been flagged by the bank and ascertain whether an incorrect payment has been made."
Mr Western said the DWP would also make further enquiries to determine whether a benefit has been incorrectly paid and whether this was due to fraud or error.
