DWP trial of bank account monitoring finds 63,000 benefit claimants breaking rules
19.05.2024 - 12:37
/ manchestereveningnews.co.uk
A recent trial by the Department for Work and Pensions (DWP) has revealed that tens of thousands of benefit claimants may be breaking the rules. The DWP asked two high street banks to monitor the bank accounts of individuals receiving Universal Credit, Pension Credit, or ESA (Employment and Support Allowance).
One of the banks, which remains unnamed, identified 713,000 accounts held by individuals claiming the benefits. Over a three-month period, it found that 60,000 of these accounts had balances exceeding the limit for entitlement to benefits.
In addition, 'abroad fraud' was detected in another 3,000 accounts. This is where the account holder either lives overseas while claiming UK benefits or takes holidays longer than permitted under DWP travel rules. Accounts were scrutinised for signs of being accessed from abroad for more than four consecutive weeks.
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The average monthly balance of the 60,000 accounts suspected of breaching capital limit rules was a staggering £50,000. The maximum savings allowed for claiming Universal Credit and ESA is £16,000, while for Pension Credit - a supplement for pensioners on a low income - it's £10,000, reports Birmingham Live.
Currently, the DWP can only inspect accounts if it suspects fraud or as part of the initial verification of a benefit claim. However, these new powers would permit regular monitoring of accounts to ensure people qualify for state support.
Benefit claimants are subject to restrictions on the amount of time they can spend abroad. For those receiving Universal Credit, the limit is no more than a month at a time, while for ESA and Pension Credit recipients, it's four weeks. While