Major crackdown in benefits system will let DWP access YOUR bank accounts

THE DWP will have access to your bank accounts to tackle debt as millions of Brits have been ordered to “get back to work” or risk losing their benefits.

Chancellor Rachel Reeves confirmed in the Budget today a raft of measures to get Brits back into the workforce as part of a crackdown on unemployment.

The Chancellor said: “We will expand DWP’s counter-fraud teams using innovative new methods to prevent illegal activity and provide new legal powers to crack down on fraudsters including direct access to bank accounts to recover debt.

“This package saves £4.3billion a year by the end of the forecast.

“The government will shortly be publishing the ‘Get Britain Working’ white paper tackling the root causes of inactivity with an integrated approach across health, education and welfare.

“We will provide £240million for 16 new trailblazer projects targeted at those who are economically inactive and most at risk of being out of education, employment or training to get people into work and reduce the benefits bill.”

Addressing the Fraud, Error and Debt Bill last month, the DWP said: “Staff will be trained to the highest standards on the appropriate use of any new powers, and we will introduce new oversight and reporting mechanisms, to monitor these new powers.

“DWP will not have access to people’s bank accounts and will not share their personal information with third parties.

“This legislation delivers on the government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the government’s commitment to not tolerate fraud, error or waste anywhere in public services, including the social security system.”

Losses to benefit fraud and error doubled in cash terms since the pandemic to £9.7billion in 2023-24.

It comes after it was confirmed this week that local services would get a £240million funding boost to “get Britain working”.

The Government will seek to “tackle the root causes of economic inactivity”, Sir Keir Starmer said in a speech earlier this week.

“Trailblazers” in local areas will bring together and streamline work, health and skills support to disabled people and the long-term sick.

The Chancellor’s “trick and treat” Halloween package included:

• A freeze to fuel duty for a 15th consecutive year in a win for The Sun’s Keep It Down campaign
• A penny off a pint by cutting draught beer duty, but raising booze taxes on other drinks
• A gloomy forecast of sluggish growth in a blow to Labour’s flagship mission
• A stamp duty rise for second-home buyers of two percentage points
• A pay rise for millions as the minimum wage was increased by £1,400 a year
• A hike to a packet of cigarettes as smoking duties were raised
• A new tax on vapes ahead of the looming ban on disposable e-cigs
• Higher taxes on air passenger duty for private jets that hits the wealthy
• A benefits crackdown with Ms Reeves telling jobless Brits to “get back to work”
• An increase to the state pension of £473 next year through the triple lock
• An inheritance tax raid through freezing the rates people pay
• An increase to the Carer’s Allowance to give cash to 60,000 more carers

The PM said: “Rebuilding Britain and delivering growth will take the skills and effort of all of us.

“That’s why this Budget will also get Britain working. It will pave the way for reforms that tackle the root causes for economic inactivity and make sure that those who can work do work.

“As a Labour Government, we will always help those who cannot support themselves, but the UK is the only G7 country for whom inactivity is still higher than it was before Covid.

“And that’s not just bad for our economy, it’s also bad for all those who are locked out of opportunity.

“So the Chancellor will announce £240million in funding to provide local services that can help people back into work and the dignity that that brings.”

Labour had previously promised reforms to help the “lockdown generation” get back into employment, and ministers expected to publish a “Get Britain Working” white paper due this autumn.

When Liz Kendall took over as Work and Pensions Secretary after the July election, she said Labour’s goal to reach an 80 per cent employment rate would mean getting two million more people back into work.

She also said powers and resources would be transferred to mayors and local areas to lead work, health and skills plans for the economically inactive.

Economic inactivity has soared by 900,000 to 2.8million people since before Covid in 2020.

Around 85 per cent of this due to those who are long-term sick, according to a report from the BCG Centre for Growth and the NHS Confederation published in September.

Today’s Budget is the first one under Labour government for 14 years.

Millions of workers will get a pay rise next year, the Chancellor confirmed, with National Minimum Wage rising by 6.7% from April 1.

There was also a big boost to benefits with payments set to rise £253 next year for millions, Reeves revealed.

And the state pension is set to rise by up to £473 next year, it was announced.

But it was bad news for smokers, with the price of a pack of cigarettes to rise once again.