UK unveils bank checks to crack down on ‘benefit’ fraud
The UK government is using new powers requiring banks to help identify benefit claimants with undeclared savings or who have spent too long abroad. Read More: https://punchng.com/uk-unveils-bank-checks-to-crack-down-on-benefit-fraud/
The United Kingdom government has implemented new anti-fraud measures, requiring banks to assist in identifying benefit claimants with undeclared savings or those spending longer abroad than permitted. This initiative, expected to save taxpayers £1.2bn by 2030/31, was announced by the Department for Work and Pensions (DWP) on Monday.
The first Eligibility Verification Notice (EVM) was issued to a financial institution. The EVM aims to detect claimants who may no longer meet the eligibility criteria for certain benefits, such as Universal Credit, Pension Credit, and Employment and Support Allowance. It will help flag cases for further investigation, ensuring people receive the correct support while reducing the risk of overpayments.
Minister for Innovation, Fraud, and Debt, Lilian Greenwood, stated that benefit fraudsters should be apprehensive due to these new powers. The measure will not grant the DWP access to claimants' bank accounts, transactions, or spending habits. The EVM is part of the government's plan to save £14.6bn over five years by tackling fraud, error, and debt.
Additional reforms, including deploying more anti-fraud specialists and strengthening checks for Universal Credit claims involving people living abroad, are planned to be unveiled at the upcoming Budget. The estimated rate of benefit fraud and error in 2025/26 was 3.2 percent.
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