Pensioners could have their bank accounts monitored and payments shared with the Government under a new fraud bill. Those who receive Pension Credit will be observed for fraud and error as part of the bill to make back £9.6 billion in social security payments by 2030. Other claimaints that could be affected include universal credit and other employment benefits.
The Public Authorities (Fraud, Error and Recovery) Bill would order banks to report the suspicious activity of benefit claimants to the Department for Work and Pensions (DWP), The Telegraph reports. Anything overpaid or claimed faudulently will then be recouped directly. However, banks will not be allowed to tell their customers that they are being monitored.
A source told the outlet that the DWP will use an AI tool developed by the Cabinet Office to analyse the data provided by the banks.
However, the Government said it would not have access to bank accounts and any decisions regarding benefit entitlement would be made by a human.
UK Finance, which represents banks and building societies, called the bill « operationally challenging » and warned it could « cause unintended harm to vulnerable individuals ».
Peter Tyler, director of personal banking at the trade body, said: « We have concerns about certain provisions in the Public Authorities (Fraud, Error and Recovery) Bill – particularly the proposed power for DWP to recover funds directly from customers’ accounts.
« It raises the risk of causing unintended harm to vulnerable individuals and is likely to be operationally challenging. »
Pension Credit provides extra money for low-income pensioners to bring their weekly income up to a minimum amount. To qualify, you must have reached State Pension age, and have a low income and savings.
The exact income thresholds vary for singles and couples and can be higher for those with disabilities or caring responsibilities.
Your income includes earnings, State Pension, and most other benefits, while savings over £10,000 will reduce the amount you receive.
The DWP has been contacted for comment.
