The Department for Work and Pensions (DWP) has confirmed that the Eligibility Verification Measure (EVM) of the proposed new Public Authorities (Fraud, Error and Recovery) Bill will initially focus on three means-tested benefits only – Universal Credit, Pension Credit and Employment and Support Allowance. DWP Minister Andrew Western said that the State Pension will be “explicitly excluded” from the measure.
The new Fraud Bill is expected to save the taxpayer £1.5 billion over the next five years, however, Conservative shadow work and pensions secretary Helen Whately MP asked DWP if it has “made an assessment of the potential merits of pilot schemes for third party data sharing powers”.
In a written response on Wednesday, Mr Western said: “The Third Party Data sharing powers were a proposal under the previous government, separate to the measures proposed in this Bill. The Eligibility Verification Measure (EVM) is significantly different to the previously proposed Third Party Data power.
“EVM will be limited to information from banks and financial institutions only and will be used only for the purpose of helping to verify eligibility for benefits. The State Pension will be explicitly excluded, and it will be focussed initially on three benefits only: Universal Credit, Pension Credit and Employment and Support Allowance.”
He continued: “A statutory Code of Practice will also be introduced and consulted on. There will be independent oversight reporting annually on the effectiveness of the measure and the legislation tightly defines what data can be gathered and for what purpose providing strong safeguards.
“To demonstrate the feasibility and potential of using data from banks to help verify eligibility for benefits, DWP has already conducted two Proof of Concepts which consisted of establishing data-sharing collaborations with two high-street banks.”
The DWP Minister added: “These exercises showed promising results, for example in the first exercise around half of the matches generated for DWP to review led to a positive outcome for the department.”
Further information about these Proof of Concepts can be found in the published impact assessment for the Bill – Impact Assessment here.
He added that the UK Government is “committed to rolling out the measure carefully through a test and learn approach to ensure it is workable and as effective as possible”.