A number of constituents have contacted me about the third-party data-gathering measure.
Fraud is a growing problem across the economy, accounting for over 40 per cent of all crime, and the welfare system is not immune to this. Although down by 10 per cent in 2022-23, £8.3 billion was still overpaid due to fraud and error in the benefit system. The Government must take measures to reduce this to ensure the support reaches the right people.
As first set out in the Department for Work and Pensions (DWP) Fraud Plan, ‘Fighting Fraud in the Welfare System’, the third-party data-gathering measure will enable DWP to better access relevant data which will help identify fraud and error in the system. DWP expects this to save up to £600 million over five years. This approach follows that of HM Revenue and Customs which already have the legal power to obtain data at scale from banks on accounts for the purposes of tax calculations and checking self-assessment returns.
I would like to stress that this is not a new surveillance power. It does not allow DWP to see how claimants are spending their money – as has been inaccurately reported in the media – and it does not give DWP access to millions of bank accounts. What this power does is require third parties to look within their own data and provide relevant information to DWP, at scale, that may signal where DWP claimants do not meet the eligibility criteria for the benefit they are receiving. No personal information will be shared by DWP with third parties, and only the minimum amount of information on those in receipt of DWP payments will be provided by third parties.
DWP is always careful to process data lawfully, proportionately, and ethically, with meaningful human input and safeguards for the protection of individuals. DWP also adheres to the Data Protection Principles, including the Purpose Limitation principle, which means that the DWP must ensure that data collected in accordance with this power is used for the purpose for which it was collected and incidental matters.
This measure does not target a particular group of benefit claimant, and where the data does not signal possible fraud or error, there will be no further consideration or investigation. For those vulnerable claimants, including those who have an appointee or who may be in care, DWP has tried and tested safeguarding procedures to protect vulnerable groups and will follow business-as-usual processes. I can also confirm that, presently, the Department’s equality analysis has not identified concerns about the impact on any groups with protected characteristics. This will be kept under review during the test and learn phase, in line with the Department’s statutory duty.
