London Daily

Focus on the big picture.
Sunday, Dec 07, 2025

‘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
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
×