New powers are being given to the DWP to monitor bank accounts in a bid to fight benefit fraud sparking concern among many people
New powers for the Department for Work and Pensions to monitor bank accounts are being introduced to identify any signs of benefits overpayments to those not entitled. Labour is set to introduce a Fraud, Error and Debt Bill, anticipated to save £1.6 billion over the next five years.
To detect overpayments, banks will scrutinise benefit claimants' accounts for savings levels that surpass the capital limits for means-tested benefits. They could also search for evidence of any foreign transactions indicating prolonged overseas trips that aren't permitted. The DWP has clarified that there is a capital limit of £16,000 for those claiming any of these means-tested benefits: Universal Credit, income-based Jobseeker's Allowance, Income-related Employment and Support Allowance, Income Support, and Housing Benefit . If your savings exceed £16,000, your benefit entitlement ceases until the amount falls below this threshold.
For those on income-based JSA, income-related ESA, Income Support and Housing Benefit, £1 per week is deducted for every £250, or part thereof, exceeding £6,000. These benefits are typically paid into accounts biweekly. Pension-aged individuals who are claiming Housing Benefit for their rent can similarly have up to £10,000 in savings without it impacting their claim. Each £500 over this limit is treated as £1 of weekly income.
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