London Daily

Focus on the big picture.
Wednesday, Nov 26, 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
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
UK Records Coldest Night of Autumn as Sub-Zero Conditions Sweep the Country
UK at Risk of Losing International Doctors as Workforce Exodus Grows, Regulator Warns
ASU Launches ASU London, Extending Its Innovation Brand to the UK Education Market
UK Prime Minister Keir Starmer to Visit China in January as Diplomatic Reset Accelerates
Google Launches Voluntary Buyouts for UK Staff Amid AI-Driven Company Realignment
UK braces for freezing snap as snow and ice warnings escalate
Majority of UK Novelists Fear AI Could Displace Their Work, Cambridge Study Finds
UK's Carrier Strike Group Achieves Full Operational Capability During NATO Drill in Mediterranean
Trump and Mamdani to Meet at the White House: “The Communist Asked”
Nvidia Again Beats Forecasts, Shares Jump in After-Hours Trading
Wintry Conditions Persist Along UK Coasts After Up to Seven Centimetres of Snow
×