DWP to take money from benefits claimants with | European Markets

New guidelines to be enacted this 12 months warn people on advantages that the DWP may take money instantly from their bank accounts.

The Authorities has introduced a new law to crack down on advantages fraudsters who cheat the system.

The invoice will give the Division for Work and Pensions powerful new powers, together with the power to go looking properties, seize objects, and take money out of people’s bank accounts.

Even these not on advantages or in PAYE employment may very well be subject to having money taken by the DWP.

Although the Authorities has but to stipulate precisely what sort of advantages fraud might be focused, it says that it’ll use the bank monitoring powers to examine for breaches of advantages eligibility guidelines.

It mentioned: “New requirements for banks and building societies to flag where there is an indication that there may be a breach of eligibility rules for benefits – preventing debts accruing.”

Essentially the most common benefit different than pensions is Common Credit score. To be eligible to obtain Common Credit score funds from the DWP, claimants can not often have more than £16,000 in financial savings.

The Authorities’s Common Credit score guidelines state: “To claim Universal Credit, you must usually have no more than £16,000 in money, savings and investments as a single claimant or if you are living with a partner.

“If you have money, savings and investments between £6,000 and £16,000, your Universal Credit payments will be reduced. Your payments will be reduced by £4.35 for every £250 you have between £6,000 and £16,000.

“Another £4.35 is taken off for any remaining amount that is not a complete £250.”

The new legal guidelines may even goal people who took out fraudulent COVID assist loans. The time restrict for recovering fraudulently obtained COVID loans has doubled from six to 12 years.

Secretary of State for Work and Pensions, Liz Kendall, mentioned: “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money.

“This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.”