Older pensioners on benefits are voicing alarm over the UK Government’s proposed Public Authorities (Fraud, Error and Recovery) Bill, which could give the Department for Work and Pensions (DWP) new powers to access banking data.
Many, including a 72-year-old pensioner from Dorset, say the proposals leave them feeling terrified and vulnerable.
Campaign group Silver Voices warns that the measures—designed to tackle benefit fraud—risk scaring off genuine claimants from applying for Pension Credit, potentially undoing recent progress in uptake.
This article explores what the Bill proposes, why it’s controversial, and how it could affect millions of older people.
What the New DWP Bill Proposes
The Public Authorities (Fraud, Error and Recovery) Bill is currently being debated in the House of Lords. If passed, it would give the DWP powers to compel banks and building societies to run automated checks on accounts belonging to claimants of means-tested benefits.
| Key Aspect | Details |
|---|---|
| Legislation Name | Public Authorities (Fraud, Error and Recovery) Bill |
| Implementing Body | Department for Work and Pensions (DWP) |
| Planned Rollout | Starting April 2026 |
| Target Benefits | Means-tested benefits like Pension Credit, Universal Credit |
| Aim | Detect fraud, overpayments, and ineligible claims |
| Savings Projected | £1.5 billion by 2030 (Office for Budget Responsibility) |
The aim is to detect overpayments and fraud by cross-checking if claimants have savings above the £16,000 threshold or other income that disqualifies them.
Why Pensioners Are Terrified
Many pensioners fear this could lead to invasive scrutiny of their personal bank accounts, with legitimate transactions flagged as suspicious.
- A 72-year-old from Dorset, who lives alone and relies on Pension Credit and the State Pension, said the proposals left them feeling “terrified” and “vulnerable.”
- Some fear benefits could be frozen if their account is flagged, even if they’ve done nothing wrong.
- Others worry that personal privacy will be compromised and trust in the benefits system will erode.
Dennis Reed, Director of Silver Voices, called the proposed powers “draconian”, warning they could discourage future Pension Credit applications.
DWP’s Response and Justification
The DWP insists it will not access individual spending data or transactions and will only receive flags if accounts breach set criteria.
Officials argue the measures will:
- Cut benefit fraud and overpayments
- Protect taxpayer money
- Save an estimated £1.5 billion over five years and £9.6 billion by 2030
A DWP spokesperson stated that these powers are about verifying eligibility, not spying on personal spending, and that strong safeguards will be in place.
Wider Powers Under the New Bill
The Bill also includes several tougher enforcement measures:
- Driving bans of up to two years for benefit cheats who don’t repay overpayments
- Powers to recover money directly from fraudsters’ bank accounts
- Eligibility Verification allowing third-party organisations (like banks) to flag suspicious benefit claims to the DWP
How This Affects Pension Credit Claimants
Pension Credit tops up weekly income to:
| Category | Weekly Pension Credit |
|---|---|
| Single Pensioner | £227.10 |
| Couple | £346.60 |
It also unlocks other benefits such as:
- Free TV licence for those 75+
- Cold Weather Payments
- Housing support and reduced council tax
Campaigners warn that fear of surveillance could deter low-income pensioners from applying, leaving them without vital support—especially during winter when heating costs soar.
Timeline of Implementation
| Date | Milestone |
|---|---|
| 2025 | Bill debated in House of Lords |
| April 2026 | Phased rollout begins |
| 2030 | Projected full savings of £9.6 billion |
The proposed DWP anti-fraud powers are meant to protect public funds but are sparking anxiety among older people who depend on benefits like Pension Credit. Critics argue the rules risk punishing the vulnerable while chasing a small minority of fraudsters.
As the Bill moves forward, it is vital to ensure that genuine claimants are not deterred by fear of surveillance. With the cost of living and energy prices still high, these benefits remain a lifeline for many pensioners.
FAQs
Will the DWP see all my bank transactions?
No. Banks will only flag accounts breaching benefit thresholds, not share detailed transaction data.
When will the new rules take effect?
The measures are expected to roll out from April 2026, pending final approval.
Could my benefits be stopped if my account is flagged?
If flagged, the DWP may investigate your claim. Benefits could be paused during checks, but you can appeal if wrongly flagged.
