The Department for Work and Pensions (DWP) is set to gain new powers enabling staff to scrutinize the bank accounts of Universal Credit claimants, raising fears of widespread “debanking” under a controversial surveillance scheme.
Under the Public Authorities (Fraud, Error and Accountability) Bill, government departments can request detailed banking information from financial institutions. However, critics warn this could lead to intrusive, algorithm-driven investigations that unfairly target millions of innocent benefits recipients.
Liberal Democrats' Work and Pensions spokesman Steve Darling criticized the government’s “blanket approach,” describing it as a mass data trawling operation lacking sufficient safeguards. He called for stronger oversight by the independent reviewer to ensure fairness and proportionality.
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Neil Duncan-Jordan highlighted the risk of errors: “If algorithms scan 10 million accounts, just a 1% error rate means 100,000 innocent people could be wrongly investigated.” He expressed concerns that this policy reflects a troubling shift towards creating a welfare system where recipients face diminished civil liberties compared to the general population.
Conservative spokesperson Rebecca Smith also voiced disappointment, emphasizing the need to consider vulnerable individuals’ specific circumstances during assessments.
In response, DWP Minister Andrew Western assured that no vulnerable individuals will be unfairly debanked. He emphasized that human judgment will remain central, with decisions not based solely on electronic data. Western reaffirmed that sharing financial data “does not imply any wrongdoing” and insisted that existing departmental procedures — including specialist support systems — will protect those with complex needs.
As debates continue, the balance between fraud prevention and the protection of privacy and rights remains at the heart of concerns surrounding this new legislation.