Over 10,000 sign petition to stop government ‘snooping’ on pensioners’ bank accounts

pensioners Two elderly people walk past a circular portal in front of the City of London, the capital's financial district, on 23rd February 2022, in London, England.
Millions of pensioners face bank account inspections in fraud crackdown plans. (RichardBaker)

Thousands have rallied together to stop the government being given new powers to inspect the bank accounts of millions of pensioners.

The ‘Do not let the government access information on pensioners' bank accounts’ petition has amassed over 13 thousand signatures in just over a week. When it reaches 100,000 it will be considered for debate in Parliament.

“Parliament should only give government the powers that it needs to fulfil its duties.

“We believe there is no need for the government to have the power to snoop on the bank accounts of pensioners,” Garry Graham, who started the petition, said.

“This potential intrusion must be stopped,” he added.

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The new powers, which are being considered, would see banks handing over customer data to the Department for Work and Pensions (DWP) if there are concerns that the claimant does not meet the eligibility criteria for their benefits as the government ramps up fraud crackdown.

Concerns have been raised by senior MPs that the proposed legislation paves the way for surveillance and goes "step too far".

It was suggested at first that the power would be used to demand information on the bank accounts of universal credit, pension credit and employment and support allowance claimants. That is approximately 8.8 million people.

Current laws only allow the DWP to check someone’s bank account if they are suspected to be committing fraud.

However, Stephen Timms, chair of the work and pensions committee, was “particularly concerned” that an amendment meant that the new powers would extend to everyone in receipt of a state pension as well. That would bring another 11 million Britons that could see their bank data collected.

"Ministers should take new powers to intrude into the lives of citizens only when absolutely essential. What is being proposed is a step too far," he told The Telegraph.

"With means tested benefits like Universal Credit, it is clear why ministers want such powers. But the government has not made a convincing case for taking these powers for the state pension, Personal Independence Payment or child benefit.

"In fact, there appear to be no firm plans for using the powers at all.

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The bill, which is currently being considered by the House of Lords. If approved, the DWP will be measuring a number of benefits for fraud and error.

These include Universal Credit, Housing Benefit (pension age cases), Pension Credit, State Pension, Personal Independence Payment (PIP) and Disability Living Allowance (DLA).

The government has insisted that the legislation will not bring about surveillance powers.

“This measure does not give DWP access to pensioners or any claimants’ bank accounts and will only flag information if it is relevant to someone’s eligibility for the benefits they are receiving,” it said in response to the petition.

“There are a number of misconceptions about this measure. To be clear, the measure does not grant DWP access to any bank accounts and it does not allow DWP to see how claimants are spending their money.

What this measure will do is require third parties to look within their own data and provide relevant information to DWP that may signal where claimants do not meet the eligibility criteria for the benefit they are receiving,” it added.

DWP figures suggest around £8bn a year is lost to fraud and overpayment.

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