London Daily

Focus on the big picture.
Friday, Jan 30, 2026

‘Cracking down on poor people’? UK govt reportedly wants to deter Universal Credit fraud by snooping on claimants’ bank accounts

‘Cracking down on poor people’? UK govt reportedly wants to deter Universal Credit fraud by snooping on claimants’ bank accounts

The UK government reportedly plans to monitor bank account data in order to ensure that people receiving unemployment benefits aren’t cheating the system, sparking furor as the country suffers from record unemployment.

he Department for Work and Pensions (DWP) intends to step up efforts to weed out people receiving government assistance who are deemed to be too wealthy for the program.

UK citizens are barred from tapping into Universal Credit if they or their partners have more than £16,000 in the bank ($20,947). Under the program, those with savings of £6,000 ($7,855) to £16,000 receive a smaller paycheck from the government each month.

DWP Permanent Secretary Peter Schofield announced that his department was pushing to pass new laws that would allow them to obtain “bulk” bank account data, in order to ensure claimants aren’t over the £16,000 limit.

John Paul Marks, the DWP’s director general for work and health services, told MPs during a meeting with the Commons Work and Pensions Committee that having more data from banks would be “fabulous.”

“You could imagine a real-time information type system that every time you declare you don’t have capital, we could see whether or not you actually did,” Marks said.

However, not everyone thought it was such a swell idea.

“Rather than cracking down on poor people, treating them like criminals… Why don’t we crack down on massive corporations and rich crooks with offshore bank accounts?” asked one frustrated observer.

Others joked that the scheme was par for the course for the Tories, even as they claim to be doing everything they can to assist low-income families to survive the economic downturn.


Still, some argued that there was nothing wrong with the idea, pointing out that money not spent on those who don’t qualify for unemployment benefits could be rerouted to those who are most in need.

“Why is it so hard to see the logic, unless you have something to hide?” inquired a supporter of the proposed measures.

The number of people claiming universal credit has nearly doubled to six million since the government decided to shutter “non-essential” businesses in an attempt to stop the spread of coronavirus.

Schofield said that out of three million new claims, 188,000 were flagged for review, three-quarters of which were deemed to have “something wrong with them.”

Although the government is concerned about potential fraud, a new report seems to suggest that there are many worthy applicants who are denied financial assistance.

A new study found that nearly half of the people rejected for unemployment benefits between March and July suffered serious financial hardship, while more than half reported problems with mental health. One in six people who were denied Universal Credit said they struggled to put food on the table. The study estimated that at least 290,000 people were turned down for benefits during the period.

The UK has posted record job losses and saw a huge contraction in GDP as the nation struggles to bounce back from the government-imposed economic shutdown. Finance Minister Rishi Sunak announced on Thursday an expansion of the furlough replacement scheme to help companies that are struggling to stay afloat to pay workers’ wages.

Newsletter

Related Articles

0:00
0:00
Close
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Nigel Farage Attended Davos 2026 Using HP Trust Delegate Pass Linked to Sasan Ghandehari
×