The DWP will roll out bank account checks on Pension Credit claimants under its new Fraud Bill.
DWP set to start checking state pensioner bank accounts and ‘could intervene’
The Department for Work and Pensions (DWP) is set to start CHECKING state pensioners’ bank accounts – and could intervene to remove benefits. The DWP will roll out bank account checks on Pension Credit claimants under its new Fraud Bill.
Disability Rights UK warned: “Using algorithms to trawl a large number of accounts at once (on the presumption of guilty until proven innocent) removes our right to privacy, and the chances of false positive matches for fraud or error are incredibly high.”
Meanwhile, privacy campaigners Big Brother Watch have already warned that the potential for “expansive surveillance, high rates of error, and disproportionate impact on people in vulnerable positions is huge”.
Pension Credit provides support to people who have reached State Pension age and reside in Great Britain. Guarantee Credit tops up any other income to a ‘standard minimum guarantee’ amount and additional amounts may be payable in certain circumstances, for example, severe disability.
Savings Credit is an extra payment for those who have made some additional provision for their retirement through, for example, an occupational pension or savings. Those reaching State Pension age from 6 April 2016 are not eligible for Savings Credit.
The expenditure on PC increased to £5.4bn in FYE 2024, compared with £4.9bn in FYE 2023. The Pension Credit overpayment rate was 9.7% (£520m) in FYE 2024, compared with 6.8% (£330m) in FYE 2023. This increase was statistically significant.
The proportion of Pension Credit claims overpaid was 28 in 100 claims in FYE 2024, compared with 24 in 100 claims in FYE 2023. This was a statistically significant increase. The Pension Credit underpayment rate remained at 1.0% in FYE 2024 (£50m), the same as in FYE 2023 (£50m).
Additional amounts of PC can be paid if a claimant meets certain conditions, they are often called premiums. Official Error where the department has incorrectly underpaid any additional amounts (Element/Premium/Components) remained the main cause of underpayments and accounted for over £6 in every £10 underpaid last year.