People receiving certain Department for Work and Pensions (DWP) benefits face the risk of being wrongly flagged during new bank account checks introduced as part of anti-fraud efforts. Martin Hartley, group Chief Commercial Officer at business consultancy emagine and a member of the Bank of England decision-making panel, has raised serious concerns over the potential for errors.
Hartley cautions that without stringent oversight, individuals could be incorrectly identified as having received overpayments, or their funds might be wrongly deducted. “Robust verification processes are essential to prevent these risks,” he stressed. Protecting claimants from unjust financial harm is crucial not only for their well-being but also to uphold public trust in the benefits system.
He points out that errors often arise from a mix of outdated or incomplete claimant information and delays in reporting changes to circumstances. “Data sharing limitations and poor-quality data further compound inaccuracies. Systems cannot operate effectively without clean, reliable data,” Hartley explained.
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To tackle these challenges, Hartley advocates for increased automation and real-time data verification between government departments and financial institutions, supported by advanced digital infrastructure. Simplifying the benefits system and providing clearer guidance to claimants would also help reduce errors.
Furthermore, investing in staff training and ensuring claimants know how to update their information promptly would improve both accuracy and fairness throughout the system.
The benefits targeted initially for these checks are Universal Credit, Employment and Support Allowance (ESA), and Pension Credit, as these have the highest rates of welfare fraud and benefit-related criminality, according to DWP statistics.
Currently, the DWP relies on HM Revenue & Customs (HMRC) data to verify employment and income information impacting benefit eligibility. However, aspects like savings, investments, or time spent abroad depend largely on claimants self-reporting their circumstances honestly, which can lead to discrepancies.
As the government steps up fraud prevention in the welfare system, safeguards must be in place to prevent innocent claimants from suffering undue consequences due to administrative errors.