THE Prime Minister is to announce new plans which would give investigators access to information about people’s bank accounts in a bid to “root out” benefit fraudsters.
According to The Times, Keir Starmer will use his Labour conference speech to announce plans for a law to give benefit inspectors similar powers to those used by HM Revenue & Customs to target tax evasion.
It would allow fraud investigators to compel banks to give over information on people’s finances if there is a suspicion they are claiming benefits they’re not entitled to.
Starmer is due to give his first Labour conference speech as Prime Minister on Tuesday afternoon in which he will say he wants to ensure “every penny” of taxpayers’ money is spent on Labour’s pledge to “rebuild public services”.
New legislation will also allow for “search and seizure” of people’s property in cases involving organised gangs exploiting the benefit system.
Starmer (below) will say: “We will get the welfare bill down because we will tackle long-term sickness and get people back to work.
“We will make every penny work for you because we will root out waste and go after tax avoiders. There will be no stone left unturned.”
Starmer is also to announce plans for a Fraud, Error and Debt Bill to tackle the problem with benefit fraud thought to cost an estimated £10 billion a year.
Banks will be required to tell the benefit system if people have savings of more than £16,000 – the cut-off point for claiming benefits - or have been abroad for more than the four weeks which is permitted for Universal Credit claimants.
Inspectors will then subsequently investigate and seek to recover any overpayments.
The Department for Work and Pensions has said this year that the UK’s “growing propensity to commit fraud” would cost the taxpayer £2bn a year extra.
Welfare reform and a crackdown on tax avoidance are expected to make up a key part of the Chancellor’s Budget next month.
It comes as Labour have already faced criticism for cutting universal Winter Fuel Payments.
The Scottish Government previously said it was left with “no choice” but to replicate the decision on the Winter Fuel Payment.
Starmer will use his speech to acknowledge that many voters were motivated by despair at the Tories and warn his party that it needs to deliver “decisive” government without putting a heavy tax burden on workers, which will mean reforming public services.
He will say: “I know this country is exhausted by and with politics. I know that the cost-of-living crisis drew a veil over the joy and wonder in our lives and that people want respite and relief, and may even have voted Labour for that reason.
“Our project has not and never will change. I changed the Labour Party to restore it to the service of working people. And that is exactly what we will do for Britain.
“But I will not do it with easy answers. I will not do it with false hope.”
In a sign that he will be prepared to push ahead with reforms to the economy and public services despite the prospect of resistance, Starmer will say: “I have to warn you, working people do want more decisive government.
“They do want us to rebuild our public services and they do want that to lead to more control in their lives.
“But their pockets are not deep – not at all. So we have to be a great reforming government.”
