DWP will raid and seize money from bank accounts even if you’re not on benefits

The Department for Work and Pensions is set to be handed serious new powers to raid the homes of benefits claimants after a law change for 2025.

The government has proposed a new law called the Public Authorities (Fraud, Error & Recovery) Bill, which is expected to save £1.5 Billion on benefits with a range of changes aimed at stopping benefit cheats.

The DWP will be given the power to obtain search warrants from courts and enter people’s homes to ‘search and seize’ items, including computers and smartphones.

The DWP will also be able to suspend people’s driving licences for up to two years and automatically recover money from bank accounts.

It will also be able to take money out of people’s accounts, even if they are not currently claiming benefits. The powers could be used to tackle Personal Independence Payments (PIP) or Universal Credit fraud.

Announcing the bill, the government said: “DWP’s serious organised crime investigators are also expected to be handed powers to apply to a court for search warrants.

“It means that for the first time, they will be able to support Police and search premises and seize items such as computers and smartphones as evidence against fraudsters.

“DWP will also have the power to recover money directly from bank accounts of those not on benefits or in PAYE employment who owe the Department and refuse to pay up, despite having the means to do so.”

The DWP, however, insists it will not have direct access to people’s bank accounts.

“Firstly, we want to work with banks to see where people are outside the eligibility criteria and get that information, because that will help us find the fraud,” employment minister Alison McGovern told ITV’s Good Morning Britain.

“Secondly, we need the ability to have search powers ourselves to get evidence, rather than relying on the police, as other bits of government do.

“Finally, we’ve got these backstop powers.”

Money can already be reclaimed through the benefits system or PAYE, she said.

McGovern added: “If somebody’s not doing either of those things, then we need more powers to be able to get the money back.

“So, the new powers will be to get that money back through banks.

“And then, finally, as a backstop power, if after all of that they still don’t want to give us the money back … we want to be able to apply to a court to say ‘disqualify this person for driving’.

“That is a backstop power to make sure that we get this money back.”

That will be used “in extremis” to tackle benefits cheats, she told Times Radio.