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3 October 2024

Potential plans for bank account monitoring

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An update from our Parlimentary Advisors

The Express have published an article on potential plans for the Department for Work and Pensions to monitor bank accounts.

Ministers have been urged not to revive the previous government’s plans to tackle welfare fraud by using mass algorithmic surveillance, potentially involving Artificial Intelligence, on bank accounts. Privacy groups, charities, and disability rights organizations have expressed concern that such measures would create a “snoopers’ charter,” intruding deeply into the lives of benefit claimants and disproportionately impacting vulnerable groups.

The government recently proposed a bill that would require banks to share data indicating potential benefit overpayments. However, critics argue that such measures could set a precedent for excessive financial monitoring, targeting the entire population and achieving only limited results in combating fraud.

The Department for Work and Pensions (DWP) dismissed concerns, claiming any new measures would be applied proportionately and always reviewed by staff rather than automated systems. While the new Labour government does not plan to implement the broader proposal, it could still request banks to flag suspicious activity, potentially saving £1.6 billion over five years. Critics worry this could replicate past scandals if not managed carefully.

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