Ministers are being urged not to revive plans for mass algorithmic surveillance of bank accounts to combat welfare fraud, which costs £10 billion annually.

Disability rights, poverty, pensioner and privacy advocacy groups warn it could lead to a 'huge blow for privacy in the UK.' They expressed concerns in a letter to Liz Kendall, the Secretary of State for Work and Pensions.

Labour leader, Keir Starmer, proposed a bill last week to allow banks to share data indicating potential benefit overpayments.

While specific details are not yet published, the Department for Work and Pensions (DWP) emphasized that AI would not be used and individual investigations would be carried out by staff members only if fraud signals were detected.

The government aims to save £1.6 billion over five years by tackling sophisticated welfare fraud, but advocacy groups argue the measures would be disproportionate and harmful to vulnerable communities.