A recent update from the Department for Work and Pensions (DWP) has clarified its decision to conduct thorough bank checks on claimants of three specific benefits as part of the Fraud, Error and Recovery Bill currently being debated in Parliament. This proposed law will grant investigators the power to compel banks and financial institutions to disclose bank account details for accounts receiving particular DWP benefits. Initially, this measure will target Universal Credit, Pension Credit, and Employment and Support Allowance (ESA) claimants, though it may be broadened to include other benefits later on. The DWP selected these benefits for review due to their notably high rates of fraud and error, believing the banking data can help confirm essential eligibility criteria. A spokesperson for the DWP stated: "We are bringing forward the biggest fraud crackdown in a generation set to save the taxpayer £1.5billion over the next five years, part of wider plans that will save £9.6billion by 2030. While overall fraud is low in the welfare system these three benefits have some of the highest levels and so have been included." DWP statistics for the financial year 2023/2024 show that there were approximately £6.46 billion in overpayments for Universal Credit, with Pension Credit and ESA seeing £520 million and £430 million respectively. New laws will empower officials to take funds directly from individuals' bank accounts if they owe money to the DWP and are not cooperating with repayments, reports the Liverpool Echo. Investigators will need at least three months of bank statements to confirm that the debtor has enough funds. The debt can be recovered in a single payment or through instalments, based on the person's financial situation. DWP minister Andrew Western has detailed the amounts that could be deducted: "The schedule limits regular direct deductions to no more than 40 per cent of the funds entering the account over the period in which the bank statements have been supplied. Regulations can lower, but not raise, the maximum percentage in some or all cases." He added that this approach prevents excessive deductions and aligns with current DWP recovery methods. On lump sum deductions, he said: "There is no legislative cap on lump sum deductions, as we expect to use them only where someone has large available savings. "However, the DWP must be satisfied that neither lump sum nor regular deductions will cause the debtor, the other account holder or their dependents hardship in meeting essential living expenses." Mr Western highlighted the necessity of these new powers, as currently, the DWP can only recover debt by deducting from a person's benefits or from those on PAYE via a direct earnings attachment. DWP statistics reveal that approximately 885,000 individuals owe money to the department but are not currently receiving benefits and making no repayments. It's estimated that this group owes around £1.74 billion in total.