Labour Government Proceeds with Controversial “Snooper’s Charter” Despite Growing Privacy Concerns Over Mass Bank Account Surveillance

The Department for Work and Pensions (DWP) is set to launch a controversial bank account monitoring program starting in April 2026, despite widespread criticism from privacy advocates, disability rights groups, and members of the public who view the measure as an intrusive “snooper’s charter.”

What Are the New Powers?

The Public Authorities (Fraud, Error and Recovery) Bill seeks to safeguard public money by cutting public sector fraud, error and debt through extensive new powers including eligibility verification and monitoring of bank accounts. When DWP will start checking people’s bank accounts – and who will be targeted – Yorkshire Live The legislation was introduced to Parliament on January 22, 2025, and forms part of the Labour Government’s broader strategy to combat benefit fraud and errors in the welfare system.

Under these new powers, banks and building societies will be required to scan customer accounts for suspicious activity and share information with the DWP. Banks will not be allowed to tell customers when their accounts are being checked. DWP warning: Over one million state pensioners face bank account checks as Labour launches £9.6bn crackdown This represents a significant expansion of government surveillance capabilities into the personal finances of millions of benefit claimants.

Who Will Be Targeted?

Experts believe the DWP is initially concentrating on universal credit, pension credit, and employment and support allowance (ESA). When DWP will start checking people’s bank accounts – and who will be targeted – Yorkshire Live These benefits have been identified as having the highest rates of fraud and error within the social security system.

The scope of monitoring is particularly concerning for vulnerable groups. Over one million state pensioners face bank account checks as part of Labour’s £9.6 billion crackdown. DWP warning: Over one million state pensioners face bank account checks as Labour launches £9.6bn crackdown Additionally, the monitoring regime will allow checking of bank accounts of landlords, carers and parents DWP anti-fraud measures will allow monitoring of bank accounts of landlords, carers and parents | Computer Weekly who receive various forms of government support.

Implementation Timeline

The department plans to test the monitoring regime from 2025, initially working with a limited number of banks and building societies and trade body UK Finance to develop IT systems and data-sharing mechanisms. DWP anti-fraud measures will allow monitoring of bank accounts of landlords, carers and parents | Computer Weekly The full rollout is scheduled for April 2026, giving financial institutions time to establish the necessary technological infrastructure.

The House of Lords is currently examining the Bill, with debates scheduled for October 15 and October 21, 2025, before the legislation proceeds through its final parliamentary stages.

Government’s Defense and Financial Goals

The Government has stated the Bill will save £1.5 billion during the next five years, help increase investment in public services and protect the public purse, forming part of broader plans to save £9.6 billion by 2030. When DWP will start checking people’s bank accounts – and who will be targeted – Yorkshire Live

Ministers have been emphatic that the new powers won’t be abused. Ministers maintain the information obtained from such measures won’t be gathered on the assumption someone is already guilty of an offence. When DWP will start checking people’s bank accounts – and who will be targeted – Yorkshire Live The DWP has also introduced safeguards, stating that staff will be trained to the highest standards and that any signals of potential fraud will always be comprehensively reviewed by human staff members rather than relying solely on algorithmic decisions.

Among the Bill’s wide-ranging powers are financial penalties as alternatives to cases proceeding to court, with the Government emphasizing fines will act as important deterrents against public sector fraud. When DWP will start checking people’s bank accounts – and who will be targeted – Yorkshire Live

Growing Opposition and Privacy Concerns

The proposals have faced fierce criticism from multiple quarters. A coalition of prominent advocacy organizations including Disability Rights UK, Age UK, Privacy International, Child Poverty Action Group, and Big Brother Watch have all voiced serious concerns about the legislation.

In a letter addressed to former Work and Pensions Secretary Liz Kendall, they cautioned that the imposition of suspicionless, algorithmic surveillance on the public could lead to a Horizon-style IT scandal. When DWP will start checking people’s bank accounts – and who will be targeted – Yorkshire Live This reference to the Post Office scandal—where faulty computer systems led to the wrongful prosecution and imprisonment of hundreds of subpostmasters—highlights fears about the reliability of automated fraud detection systems.

The letter warns that pensioners, disabled people, and carers shouldn’t have to live in fear of the government prying into their finances. When DWP will start checking people’s bank accounts – and who will be targeted – Yorkshire Live Critics argue that the mass surveillance approach treats all benefit claimants as potential fraudsters, undermining the presumption of innocence and creating an atmosphere of suspicion around legitimate welfare recipients.

Labour MP Neil Duncan-Jordan has called on the government to limit the proposed powers, so that only those suspected of fraud are subject to surveillance, noting that the complexity of the system lends itself to errors. Plans for DWP to check benefits claimants’ bank accounts questioned

The banking sector has expressed significant reservations about these requirements, with UK Finance describing the implementation concerns. DWP warning: Over one million state pensioners face bank account checks as Labour launches £9.6bn crackdown

Public Backlash

A petition arguing that most benefit claimants are not fraudsters has gained traction, with signatories believing Ministers are taking too aggressive an approach towards benefit claimants in a way which denies freedom and rights of privacy and seems to treat all benefit claimants like fraudsters. Do not introduce regular bank account checks for benefit claimants – Petitions

DWP Response to Criticism

The DWP has firmly rejected concerns about the new powers. A DWP spokesperson dismissed these concerns, saying these claims are false and that powers will be used appropriately and proportionately through robust new oversight and reporting rules. When DWP will start checking people’s bank accounts – and who will be targeted – Yorkshire Live The department has emphasized that the information provided by banks is unrelated to DWP algorithms and any signals of potential fraud will always be looked at comprehensively by a member of staff. When DWP will start checking people’s bank accounts – and who will be targeted – Yorkshire Live

The Broader Context

The introduction of these powers comes at a time when the Labour Government is facing pressure to reduce public spending and crack down on welfare fraud. However, the approach has raised fundamental questions about the balance between protecting public funds and preserving individual privacy rights in an increasingly digitized society.

As the legislation moves through its final stages in Parliament, the debate continues over whether mass surveillance of bank accounts represents a proportionate response to benefit fraud or an overreach of government power that could ensnare innocent people while eroding fundamental privacy protections.RetryClaude can make mistakes. Please double-check cited sources.