DWP asks banks for ‘three months of statements’ on all benefits claimants, The Reason Will Shock You

The Department for Work and Pensions (DWP) is planning to give banks new powers to share personal information about people who receive benefits. This has caused a lot of concern, especially among privacy and human rights campaigners.

Labour MP Liz Kendall, who is now the welfare secretary, supports these changes. She believes they will help the government take back money from people who were paid too much in benefits by mistake or through fraud. The government estimates this could save around £500 million each year once the system is fully running.

However, not everyone agrees with this approach. Jasleen Chaggar from the group Big Brother Watch told The Guardian that the welfare system is already complicated and confusing. She said that many people who owe money to the DWP only do so because of errors or misunderstandings not because they tried to cheat the system. She strongly criticised the idea of letting the government check people’s bank accounts without their knowledge. She argued that this kind of power goes too far and feels like the government is spying on people.

Chaggar added that asking banks for three months of someone’s bank statements to decide if they can afford to pay back money is too invasive and unfair. She described it as controlling and even “dystopian,” suggesting it feels like something from a science fiction movie where people are watched and controlled.

She also believes that if the government wants to take money straight from someone’s bank account, a judge—not a government worker—should make that decision. Right now, the DWP can already recover money by reducing a person’s benefits or, if they’re working, by taking money directly from their pay through the tax system.

Groups like Citizens Advice have warned that these new powers could be harmful, especially to people who are already struggling. They say that looking through large numbers of bank accounts could create security problems and result in mistakes. Some people might lose access to the money they need for basic things like food, medicine, or rent just because of a computer error or a misunderstanding.

It’s also worth noting that actual fraud in some benefit schemes is very low. For example, fraud in the Personal Independence Payment (PIP) system was only about 0.2% of total spending in 2022-2023. In fact, during that same time, the DWP lost more money because of its own mistakes—underpaying £60 million in PIP—than it did through fraud, which cost around £40 million.

So while the goal might be to save money and stop fraud, many are worried that these new powers could do more harm than good, especially to the people who need help the most.