UK Fraud Bill targets benefit claimants for mass surveillance
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Opinion
UK Fraud Bill targets benefit claimants for mass surveillance
The UK government’s proposed Fraud Bill will disproportionately place millions of benefit claimants under constant surveillance, creating a two-tier system where people are automatically suspected of wrongdoing for seeking welfare
By
Anna Dent
Published: 21 May 2025
Earlier this month the House of Lords had its first debate on the Public AuthoritiesBill.
The Bill aims to reduce government losses to benefit fraud and error, and would give the Department for Work and Pensionsunprecedented powers of investigation to routinely and covertly check benefit claimants' bank accounts, the right to enter private homes, and to seize drivers' licenses or money from bank accounts.
Expert organisations including Justice, the Public Law Project and Big Brother Watch warn that although the aim of the Bill is hugely important, the proposed powers are disproportionate and represent a breach of human rights. As Baroness Finn remarked in the Lords, "support for the goal must not mean silence about the means."
The Bill promises an expanded regime of digital surveillance for people in receipt of Universal Credit, Employment and Support Allowance, and State Pension Credit. This includes the introduction of an 'Eligibility Verification Measure'which would enable DWP to direct banks to check millions of bank accounts for as yet unspecified indicators of benefit fraud and error.
DWP already has similar powers but crucially can only use them where it has 'reasonable grounds' to suspect fraud is taking place, which is the standard threshold for many comparable state powers. This Bill would completely remove that threshold, and enable intrusive surveillance without any justification.
Details on exactly how the EVM will be used are sparse, but it could theoretically result in every single claimant’s bank account being checked, with no suspicion or indication of any fraud, error or over-payment needed.
Accounts flagged through these checks would then be passed to a member of DWP staff for further investigation, but what this will involve is still unclear. A code of practice to accompany the Bill is still unpublished, so we don't actually know what sequence of events would play out.
Will individuals be informed when they are being investigated? Will their benefits be suspended during an investigation? Will their claim be assessed by other fraud algorithms?
In some circumstances, the Department could automatically take money from the bank accounts of people no longer on benefits if they are deemed to have committed fraud or been accidentally overpaid. Banks will be prevented from informing their customers that this recovery process is happening, so the first that a customer might know is when money disappears from their account.
The finance industry has expressed concern about tensions between the obligations the Bill would create and financial institutions' consumer obligations, the risks of financial harm to vulnerable customers, and the lack of robust safeguards for the transfer of banking data.
Others are concerned about the potential for miscarriages of justice which many will be unable to effectively challenge: the benefits covered by the Bill are only available to people on a low income, who are unlikely to have the means to engage in legal action.
These powers would apply to both fraud and error, including over-payments caused by the Department's own mistakes.
Overpayments can be caused by myriad mistakes on the part of DWP or claimant, or both, and the complexity of making claims is well known. But under the Bill, fraud and error will be treated the same, with the same digital surveillance deployed and the same powers to seize money and other assets.
Universal Credit already appears to be particularly prone to mistakes and over-payments. Rather than punishing people after the fact, it would be better for DWP to work out why it is particularly vulnerable, do more to help people avoid mistakes, and reduce the rate at which their own mistakes cause over-payments.
Treating all claimants like intentional fraudsters stigmatises people on benefits, and risks people who need financial support disengaging from the benefit system.
Rather than focus on professional criminals who are actively defrauding the Department, the bill scoops everyone up and places them all under suspicion.
It creates a two-tier system in which benefit claimants would be subject to an invasion of privacy not applied to the rest of the population: millions of people who have done nothing wrong will be laid open to mass surveillance.
DWP officers would be given police-like powers of entry to private premises and seizure of private property. This is an extraordinary expansion of very serious powers targeted at one section of society. It fundamentally undermines basic rights to privacy and to be presumed innocent until proven otherwise.
Whether the ends justify these heavy-handed means is doubtful.
The Department's own impact assessment estimates that just 2% of social security fraud and error over-payments will be clawed back through the use of these powers over 10 years: a disproportionate invasion of privacy for little benefit.
The finance industry also warns that the organised gangs who carry out large-scale benefit fraud using sophisticated methods to avoid detection will easily find ways to work around the new powers.
Also on its way through the legislative process is the Data Use and Access Bill, which proposes to reduce the requirement for human oversight of automated decisions within government. If both Bills pass into law as currently drafted, there is a potential future in which the human-in-the-loop safeguards relating to digital bank surveillance are no longer legally required.
This leaves the door open to hugely consequential decisions being made entirely by automated systems. We know that existing DWP fraud algorithms generate bias; the introduction of more automation and digital surveillance and the potential for less human oversight should trouble us all.
Increasing the number of people that are flagged for investigation via these new powers could put thousands more through the difficult process of fraud investigation. DWP’s own figures show that three-quarters of people whose benefit claims are flagged as suspicious actually have no fraud or error related to their claim at all.
Ten million people receive the benefits that will be covered by the new powers: if even 1% of claimants are wrongly investigated many thousands of people will be affected.
As well as the immediate impact of these disproportionate powers, politicians need to be aware of the precedents they are setting, and how the legislation could be used by other administrations in future.
Eliminating the need for the government to justify wholesale digital surveillance removes a basic protection against state over-reach. Only the state pension is explicitly excluded from the powers in the Bill: a government with an even more single-minded obsession with efficiency and fraud could roll out the bank surveillance to many, many other people.
What will affect a minority now could become the norm for the majority.
Anna Dent is an independent researcher and policy consultant, working on the digital welfare state and human-centred technology
about digital surveillance
UK government outlines plan to surveil migrants with eVisa data: Electronic visa data and biometric technologies will be used by the UK’s immigration enforcement authorities to surveil migrants living in the country and to ‘tighten control of the border’, attracting strong criticism from migrant support groups.
AI surveillance towers place migrants in ‘even greater jeopardy’: The use of autonomous surveillance towers throughout the English coast forces migrants into increasingly dangerous routes and contributes to their criminalisation.
Invasive tracking ‘endemic’ on sensitive support websites: Websites set up by police, charities and universities to help people get support for sensitive issues like addiction and sexual harassment are deploying tracking technologies that harvest information without proper consent.
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View All Blogs
#fraud #bill #targets #benefit #claimants
UK Fraud Bill targets benefit claimants for mass surveillance
Ming - stock.adobe.com
Opinion
UK Fraud Bill targets benefit claimants for mass surveillance
The UK government’s proposed Fraud Bill will disproportionately place millions of benefit claimants under constant surveillance, creating a two-tier system where people are automatically suspected of wrongdoing for seeking welfare
By
Anna Dent
Published: 21 May 2025
Earlier this month the House of Lords had its first debate on the Public AuthoritiesBill.
The Bill aims to reduce government losses to benefit fraud and error, and would give the Department for Work and Pensionsunprecedented powers of investigation to routinely and covertly check benefit claimants' bank accounts, the right to enter private homes, and to seize drivers' licenses or money from bank accounts.
Expert organisations including Justice, the Public Law Project and Big Brother Watch warn that although the aim of the Bill is hugely important, the proposed powers are disproportionate and represent a breach of human rights. As Baroness Finn remarked in the Lords, "support for the goal must not mean silence about the means."
The Bill promises an expanded regime of digital surveillance for people in receipt of Universal Credit, Employment and Support Allowance, and State Pension Credit. This includes the introduction of an 'Eligibility Verification Measure'which would enable DWP to direct banks to check millions of bank accounts for as yet unspecified indicators of benefit fraud and error.
DWP already has similar powers but crucially can only use them where it has 'reasonable grounds' to suspect fraud is taking place, which is the standard threshold for many comparable state powers. This Bill would completely remove that threshold, and enable intrusive surveillance without any justification.
Details on exactly how the EVM will be used are sparse, but it could theoretically result in every single claimant’s bank account being checked, with no suspicion or indication of any fraud, error or over-payment needed.
Accounts flagged through these checks would then be passed to a member of DWP staff for further investigation, but what this will involve is still unclear. A code of practice to accompany the Bill is still unpublished, so we don't actually know what sequence of events would play out.
Will individuals be informed when they are being investigated? Will their benefits be suspended during an investigation? Will their claim be assessed by other fraud algorithms?
In some circumstances, the Department could automatically take money from the bank accounts of people no longer on benefits if they are deemed to have committed fraud or been accidentally overpaid. Banks will be prevented from informing their customers that this recovery process is happening, so the first that a customer might know is when money disappears from their account.
The finance industry has expressed concern about tensions between the obligations the Bill would create and financial institutions' consumer obligations, the risks of financial harm to vulnerable customers, and the lack of robust safeguards for the transfer of banking data.
Others are concerned about the potential for miscarriages of justice which many will be unable to effectively challenge: the benefits covered by the Bill are only available to people on a low income, who are unlikely to have the means to engage in legal action.
These powers would apply to both fraud and error, including over-payments caused by the Department's own mistakes.
Overpayments can be caused by myriad mistakes on the part of DWP or claimant, or both, and the complexity of making claims is well known. But under the Bill, fraud and error will be treated the same, with the same digital surveillance deployed and the same powers to seize money and other assets.
Universal Credit already appears to be particularly prone to mistakes and over-payments. Rather than punishing people after the fact, it would be better for DWP to work out why it is particularly vulnerable, do more to help people avoid mistakes, and reduce the rate at which their own mistakes cause over-payments.
Treating all claimants like intentional fraudsters stigmatises people on benefits, and risks people who need financial support disengaging from the benefit system.
Rather than focus on professional criminals who are actively defrauding the Department, the bill scoops everyone up and places them all under suspicion.
It creates a two-tier system in which benefit claimants would be subject to an invasion of privacy not applied to the rest of the population: millions of people who have done nothing wrong will be laid open to mass surveillance.
DWP officers would be given police-like powers of entry to private premises and seizure of private property. This is an extraordinary expansion of very serious powers targeted at one section of society. It fundamentally undermines basic rights to privacy and to be presumed innocent until proven otherwise.
Whether the ends justify these heavy-handed means is doubtful.
The Department's own impact assessment estimates that just 2% of social security fraud and error over-payments will be clawed back through the use of these powers over 10 years: a disproportionate invasion of privacy for little benefit.
The finance industry also warns that the organised gangs who carry out large-scale benefit fraud using sophisticated methods to avoid detection will easily find ways to work around the new powers.
Also on its way through the legislative process is the Data Use and Access Bill, which proposes to reduce the requirement for human oversight of automated decisions within government. If both Bills pass into law as currently drafted, there is a potential future in which the human-in-the-loop safeguards relating to digital bank surveillance are no longer legally required.
This leaves the door open to hugely consequential decisions being made entirely by automated systems. We know that existing DWP fraud algorithms generate bias; the introduction of more automation and digital surveillance and the potential for less human oversight should trouble us all.
Increasing the number of people that are flagged for investigation via these new powers could put thousands more through the difficult process of fraud investigation. DWP’s own figures show that three-quarters of people whose benefit claims are flagged as suspicious actually have no fraud or error related to their claim at all.
Ten million people receive the benefits that will be covered by the new powers: if even 1% of claimants are wrongly investigated many thousands of people will be affected.
As well as the immediate impact of these disproportionate powers, politicians need to be aware of the precedents they are setting, and how the legislation could be used by other administrations in future.
Eliminating the need for the government to justify wholesale digital surveillance removes a basic protection against state over-reach. Only the state pension is explicitly excluded from the powers in the Bill: a government with an even more single-minded obsession with efficiency and fraud could roll out the bank surveillance to many, many other people.
What will affect a minority now could become the norm for the majority.
Anna Dent is an independent researcher and policy consultant, working on the digital welfare state and human-centred technology
about digital surveillance
UK government outlines plan to surveil migrants with eVisa data: Electronic visa data and biometric technologies will be used by the UK’s immigration enforcement authorities to surveil migrants living in the country and to ‘tighten control of the border’, attracting strong criticism from migrant support groups.
AI surveillance towers place migrants in ‘even greater jeopardy’: The use of autonomous surveillance towers throughout the English coast forces migrants into increasingly dangerous routes and contributes to their criminalisation.
Invasive tracking ‘endemic’ on sensitive support websites: Websites set up by police, charities and universities to help people get support for sensitive issues like addiction and sexual harassment are deploying tracking technologies that harvest information without proper consent.
In The Current Issue:
UK critical systems at risk from ‘digital divide’ created by AI threats
UK at risk of Russian cyber and physical attacks as Ukraine seeks peace deal
Standard Chartered grounds AI ambitions in data governance
Download Current Issue
Microsoft entices developers to build more Windows AI apps
– Cliff Saran's Enterprise blog
Red Hat launches llm-d community & project
– Open Source Insider
View All Blogs
#fraud #bill #targets #benefit #claimants
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