The Department for Work and Pensions (DWP) is set to begin reviewing the bank accounts of low-income state pensioners as part of a new initiative aimed at reducing overpayments.
The process will primarily target benefits that currently have the highest instances of incorrect payments. These benefits include Universal Credit, Pension Credit, and Employment and Support Allowance.
The DWP also indicated that, with Parliament’s approval through affirmative regulations, other benefits may be subject to these checks in the future.
Focus on High-Risk Benefits
The department will initially focus on benefits with the highest rates of incorrect payments. This includes the most common benefits, such as Universal Credit, Pension Credit, and Employment and Support Allowance.
The checks are intended to identify cases where recipients may be ineligible for certain benefits, prompting the DWP to review other claims that may be linked to ineligible recipients.
For example, if the DWP identifies someone as ineligible for Pension Credit, they will also investigate the individual’s eligibility for Housing Benefit.
The Role of Human Oversight
The DWP has emphasized that human oversight will continue to play a critical role in the process.
However, the department’s new approach to checking bank accounts has sparked concern among privacy and disability rights campaigners.
Concerns Over Privacy and Surveillance
Under the current regulations, the DWP can only request bank transaction details when there are reasonable grounds to suspect fraud.
Despite this, Disability Rights UK has raised concerns, stating that using algorithms to review numerous accounts could lead to privacy violations and a high risk of false positives. These could include errors where individuals are wrongly flagged as potential fraudsters.
Privacy advocates from Big Brother Watch have also warned about the potential risks of expansive surveillance. They fear that the new system could lead to disproportionate impacts on vulnerable individuals and increase the likelihood of mistakes in the process.
Exclusion of State Pension from the New System
The DWP has clarified that state pensions are not subject to these new eligibility checks. The regulations explicitly exclude the state pension, ensuring that recipients will not be impacted by these changes.
Changes in Pension Credit and Increased Uptake
As part of the DWP’s annual benefits uprating exercise, Pension Credit payments have increased starting April 7. Single pensioners will now receive £227.10 per week, up from £218.15, while couples will see their weekly payments rise from £332.95 to £346.60.
Impact of Pension Credit Uptake
The DWP has reported a significant increase in Pension Credit uptake, with 50,000 more awards granted since last summer, marking a 64% increase compared to the previous year. This boost in claims reflects the ongoing efforts to support vulnerable pensioners in securing the benefits they are entitled to.
For those interested in applying for Pension Credit, the DWP has noted that nearly 78% of new claims are processed within the target timeframe of 50 working days. This means that individuals who apply for Pension Credit this month could potentially receive their first payment by mid-June.
Pension Credit Payment Changes
| Recipient Type | Previous Weekly Payment | New Weekly Payment |
|---|---|---|
| Single Pensioner | £218.15 | £227.10 |
| Couple | £332.95 | £346.60 |
The DWP’s new initiative to review bank accounts of low-income pensioners aims to ensure the accuracy of benefit payments, focusing on high-risk areas such as Pension Credit and Universal Credit.
While the move is designed to address overpayments, it has raised concerns about privacy and the potential for errors.
However, the DWP has clarified that state pensions are not affected, and Pension Credit payments have been increased, with more individuals receiving support.
FAQs
What benefits are being checked by the DWP?
The DWP will focus on Universal Credit, Pension Credit, and Employment and Support Allowance for the new bank account checks.
Will the state pension be affected?
No, the state pension is excluded from these checks and will not be affected.
How long will it take to receive Pension Credit?
New Pension Credit claims are processed in about 50 working days, with the first payment expected by mid-June for claims made this month.
How much has Pension Credit increased?
Starting April 7, single pensioners will receive £227.10 per week, and couples will receive £346.60 per week.