London Daily

Focus on the big picture.
Thursday, Oct 01, 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
Southwest England Faces Flood Alerts After Heavy Autumn Storms
UK Expands Funding for Rapid Electric Vehicle Charging Infrastructure
Welsh Government Approves Funding to Upgrade South Wales Transport
Northern Ireland Tensions Rise as Orange Order Rejects Drumcree Compromise
NHS Leaders Back Early Design of Proposed National Care Service
More Than One-Third of Regional UK Universities Face Financial Deficits
UK Current Account Deficit Narrows as Cross-Border Financial Flows Remain Strong
Bank of England and FCA Issue New Rules for Stablecoins and Digital Assets
MI5 Warns UK Universities Over Research Links With Chinese Institutions
UK Energy Price Cap Rises 4% as Electricity VAT Is Temporarily Suspended
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
Scottish Government Proposes Replacing 32 Councils With Larger Regional Authorities
Ofgem Raises UK Household Energy Price Cap by 4% From October
UK Counter-Terrorism Police Continue Investigation After Five Arrests Near RAF Fairford
OECD Cuts UK 2027 Growth Forecast to 1%
Labour Says State Pension Triple Lock Remains Protected Through Current Parliament
Andy Burnham Pledges National Care Service With Free Social Care in England
Six Flags Permanently Shuts Landmark X2 Roller Coaster Following Safety Scandals
Metropolitan Police Rule Out Terrorism in Golders Green Stabbing Investigation
Lithium-Ion Battery Identified as Cause of Fatal Merseyside House Fire
UK Department Rejects New Sea Use Framework Due to Stakeholder Fatigue
Major Thames Water Pipe Burst Causes School Closures in London
Aldi Commits £900 Million to Expand UK Supermarket Network
Scottish Affairs Committee Warns Skills Shortages Threaten Defence Sector Expansion
Parliamentary Committee Warns Northern Ireland Budget Deadlock is Stalling Economic Growth
NHS Hospitals in England Face Severe Shortages of Essential Medications
Home Secretary Signals Major Overhaul of UK Immigration and Leave to Remain Policies
Chancellor Promises New Job Schemes Alongside Strict Fiscal Discipline
Energy Secretary Proposes Taxpayer-Funded Green Transition and National Electricity Grid
UK Government to Renationalise Avanti West Coast Railway Franchise in March
Prime Minister Andy Burnham Pledges Major Social Care and Infrastructure Reforms
Five Suspects Released on Bail Following Alleged Bomb Plot Near RAF Fairford
UK Diesel Prices Hit Record High of 199p Per Litre
Transport for Wales and Network Rail Complete Electrification of South Wales Metro
Defra Expands Incentives for Sustainable Farming and Biodiversity in England
Northern Ireland Executive Approves Funding Package to Resolve Public Sector Pay Disputes
Universities UK Warns of Financial Insolvency Risks for Higher Education Institutions
UK Prisons Activate Emergency Protocols to Manage Capacity Pressures
UK Government Establishes New Safety Standards for Frontier AI Models
Home Office Tightens Skilled Worker Visa Requirements and Dependent Rules
Ministry of Defence Restructures Royal Navy Frigate Procurement to Prevent Overruns
UK Government Mandates New Housing Targets to Address National Shortage
UK and Scottish Governments Reach Agreement on North Sea Energy Transition
NHS Launches Digital Overhaul to Reduce Surgical Backlogs in England
Bank of England Holds Interest Rates as Service Sector Inflation Persists
UK Chancellor Announces Fiscal Consolidation Measures to Stabilize National Debt
RNLI Chief Executive Condemns Misinformation and Abuse Targeting Volunteer Crews
Metropolitan Police Charge Swindon Man with Assisting Foreign Intelligence Services
British Intelligence Report Warns Environmental Collapse Threatens Global Defense Infrastructure
×