New powers will allow DWP fraud investigators to raid benefit claimants’ properties and seize electronic devices.
MPs and other experts are scrutinising legislation going through Parliament providing new powers to tackle fraud and error with regard to DWP payments, as well as other public authorities.
The new laws will grant DWP investigators new powers of « entry, search and seizure » to tackle cases of criminal gangs exploiting the benefits system.
In announcing the new bill, the DWP said: « DWP’s serious organised crime investigators are also expected to be handed powers to apply to a court for search warrants.
« It means that for the first time, they will be able to support Police and search premises and seize items such as computers and smartphones as evidence against fraudsters. »
Helena Wood, director of Public Policy and Strategic Engagement at fraud prevention group Cifas, spoke to MPs about why the new powers were needed.
She said: « Police simply do not have the resources to look at fraud against consumers, never mind to support DWP, so I think it is entirely necessary to extend those powers of search and seizure to DWP as well. »
However, she said there needs to be more clarity about who will be able to wield the new seizure powers. She explained: « We trust the police to use their coercive and intrusive powers based on their skills, experience and training.
« At the moment, there is a reasonably low bar set in the legislation, which is merely to be a higher executive officer or senior executive officer—a very entry-grade civil service officer. »
In announcing the legislation, Labour said that the search and seizure powers would be used in cases where « criminal gangs » are defrauding the benefits system.
Professor Mark Button, director of the Centre for Cybercrime and Economic Crime at the School of Criminology and Criminal Justice at the University of Portsmouth, also spoke about the importance of the new powers given the lack of police resources to tackle fraud.
He said: « You are obviously dealing with increasingly highly organised fraudsters that often operate across borders. That poses significant challenges, particularly for many public sector fraud agencies, particularly when the police themselves have very limited resources.
« Fewer than 2,000 officers are dedicated to economic crime. They simply do not have the time to help public sector bodies deal with these things.
« When you look at those particular challenges, having professional capacity within government to investigate fraud with the appropriate powers is a sound basis for dealing with these problems. »
Others powers in the bill include measures to directly take funds from a person’s bank account where they have wrongly received payments from the DWP or from other public authorities.
In these cases, officials have to request at least three months of bank statements from the individual’s bank provider, to confirm they have the funds to pay up. The DWP will not have direct access to people’s bank accounts in these cases.
DWP nvestigators will also be able to require banks to hand over details of bank accounts they provider that are linked to benefits, to make sure only those who are eligible for receiving funds.
These checks will initially be used to verify the details of those on Universal Credit, Employment and Support Allowance, and Pension Credit, although the powers could be to target people on other benefits.
