Committee says impact on poorest people of taking money directly from accounts has been understated
A government watchdog has criticised ministers for understating the impact on the poorest of plans to directly deduct benefit overpayments from people’s bank accounts.
The Department for Work and Pensions (DWP) is legislating to require banks to withdraw cash from the accounts of claimants who have been overpaid due to fraud or error.
Banks will be able to charge claimants for “reasonable” administration costs prior to making deductions. The government is yet to specify the value of the charges.
After a review of the public authorities (fraud, error and recovery) bill, the Regulatory Policy Committee, an independent legislative watchdog, has said the impact on the most vulnerable has been understated in an impact assessment of the bill.
Written evidence submitted by the Regulatory Policy Committee
