The Department for Work and Pensions (DWP) have confirmed that the new Fraud, Error and Debt Bill is due to come before Parliament “early in the new year”. DWP Minister Andrew Western also clarified that while Artificial Intelligence (AI) tools are being used to detect fraud and error within the benefits system, “the final decision on whether someone receives a welfare payment is always made by a human”.
His comments came in response to questions in Parliament on Monday on the new Bill and the DWP’s plans to recoup around £35 billion lost to fraud and error since the Coronavirus pandemic in 2020. Work and Pensions Committee Chair Debbie Abrahams (Labour) highlighted how a recent Freedom of Information (FOI) request “indicates that AI tools used to detect DWP fraud are biased and disproportionately discriminate against people by age, disability, marital status and nationality”
The Oldham East and Saddleworth MP asked: “What assurances can the Minister give that the procurement and use of such tools will be covered by strict governance standards, including tests for fairness?”
In response, Mr Western said: “We face a significant challenge, with fraud and error costing the Department almost £10 billion a year. It is right that we look to utilise all available tools to tackle it. However, I understand her concerns, although I would remind her that the final decision on whether someone receives a welfare payment is always made by a human.
“That is the most robust safeguard that we can have in place – although of course it sits alongside a broader suite.”
Labour/Co-op MP Sally Jameson referenced the £35bn loss to fraud and error since the pandemic and asked if the DWP could “outline the plans and the timeline for recouping that money?”
Mr Western responded: “The Fraud, Error and Debt Bill is due to come to the House early in the new year. This Government are serious about tackling fraud; it is just a shame that we inherited the mess we did.”
The DWP Minister recently clarified that the proposed Fraud, Error and Debt Bill “will not give DWP access to any bank accounts, nor any information on how claimants spend their money”.
He also said that banks and financial institutions will share “limited information” with the Department to “help verify benefit eligibility by flagging possible conflicts with eligibility rules”.
The DWP currently pays benefits to more than 23 million people across Great Britain.
New DWP fraud measures
The measures in this Bill will remedy that, giving DWP powers to:
- Better investigate suspected fraud and new powers of search and seizure, so DWP can take greater control of investigations into criminal gangs defrauding the taxpayer.
- Make changes to the penalties system, so no one found to have committed fraud against the social security system avoids punishment, bringing increased fairness for claimants who do the right thing.
- Allow DWP to recover debts from individuals who can pay money back but have avoided doing so, bringing greater fairness to debt recoveries.
- Eligibility Verification – require banks and financial institutions to examine their own data sets to highlight where someone may not be eligible for the benefits they are being paid.