DWP Want power to investigate claimant bank accounts

[SalfordBoro]

This is in the Torygraph - just who the hell have they included in their survey to get the figures they have come up with?

New DWP proposals could see investigators checking bank accounts

The potential legislative measures include providing greater third-party access to data, which could see trained investigators collecting information from banks on where claimants are spending money

www.derbytelegraph.co.uk

 

[edinboro]

It's in the Derby Telegraph not THE Telegraph. And it's based on a survey on attitudes to it. There's no way they could do this without being in breach of all sorts of data protection laws.

 

[FishofContemplation]

It's in the Derby Telegraph not THE Telegraph. And it's based on a survey on attitudes to it. There's no way they could do this without being in breach of all sorts of data protection laws.

It’s a DWP survey, though not a Derby Telegraph survey. And it links ro a DWP report and white paper, so it’s a proper story. The primary source appears to acknowledge that this would require legislation rather than being based on current powers, but obviously then they could do it without being in breach of all sorts of data protection laws.

 

[Boro in Devon]

I used to do this sort of thing when working in data analytics in a bank. It is much harder than you would think.
For example, a payment to the supermarket can include all sorts/ food/ drink/ clothing/ mobile top ups/ petrol.
The best use would be to look for undeclared income, however just open up a second bank account, or cash in hand.

 

[eggybread]

Would work through open banking, very doable but requires customer consent

 

[SilentProf]

If they want to start digging through bank accounts, let’s start with their own.

 

[homesickblues]

Would it help prevent fraud though?

 

[hobblewobble]

There's a lot of fiddling going on though, people are very good at exploiting loop holes.

 

[WeeGord]

There's a lot of fiddling going on though, people are very good at exploiting loop holes.

Indeed, you're quite correct. The Tories are the absolute masters at it.

 

[NYboro]

Indeed, you're quite correct. The Tories are the absolute masters at it.

Benefits fraud is absolute peanuts in comparison.

 

[WeeGord]

Benefits fraud is absolute peanuts in comparison.

IIRC benefit fraud is actually a very tiny percentage of the benefit budget and more benefits go unclaimed than is fraudulently claimed by quite some margin.

Then there's tax loopholes, tax evasion, the tools of the rich that cost many, many times more than benefit fraud.

The government needs a dead cat bogeyman though.

 

[Wez68]

I don’t see what the problem is ,the council are already doing it to a degree with OAP living in rented accommodation ie bungalows .

 

[MolteniArcore]

There's a lot of fiddling going on though, people are very good at exploiting loop holes.

Not having a go at you @hobblewobble, just the point you make. It sickens me when people think benefit fraud is a massive problem. The fact is it isn’t - it is just another example of ‘blame the poor’. What they don’t want you to see is how much tax fraud there is and they do VERY LITTLE to sort that out. I don’t see the Inland Revenue wanting to access every tax payers bank accounts…

 

[YouAreMyBoro]

Not having a go at you @hobblewobble, just the point you make. It sickens me when people think benefit fraud is a massive problem. The fact is it isn’t - it is just another example of ‘blame the poor’. What they don’t want you to see is how much tax fraud there is and they do VERY LITTLE to sort that out. I don’t see the Inland Revenue wanting to access every tax payers bank accounts…

View attachment 66403

Thanks for this, was talking about the same thing with a mate yesterday and said I needed a diagram.
Imagine if we could get that avoided tax back into the system, crazy that we don't put more effort into it.

 

[Nano]

Thanks for this, was talking about the same thing with a mate yesterday and said I needed a diagram.
Imagine if we could get that avoided tax back into the system, crazy that we don't put more effort into it.

Avoided tax includes things like ISAs and pension contributions so not something you would want to get rid of. Hard to use it as a relevant comparison without knowing what it all is.

 

[MolteniArcore]

Avoided tax includes things like ISAs and pension contributions so not something you would want to get rid of. Hard to use it as a relevant comparison without knowing what it all is.

Same for benefit fraud though. That will include actual fraud and local authority errors.

 

[Redwurzel]

I would think working for cash in hand is much harder nowadays as businesses have to have National insurance numbers of employees and account for all their wages paid.

The unemployed have to produce reports almost on their job seeking, at short notice - all for £80/week in benefits.

Possibly those claiming means tested benefits who have above the savings threshold and then give savings away or buy gold coins are an area of fraud for say Pensions Credit/Savings credit or help with care costs. I would have thought a significant number of over 65s have over £16k/£23.5k in liquid assets.

Overall though those avoiding tax is a much bigger figure - didn't Bernie Ecclestone avoid £700m in tax on his own against £1,000m in benefit fraud for the whole of the UK.