How people on benefits will be affected by the new fraud bill
The key details, including a potential driving ban, from the government's bill on how it intends to crack down on benefit fraud.
The government has introduced a law to Parliament that will crack down on benefit fraud and recover more than £1bn from members of the public who have claimed more than they are owed.
The Public Authorities (Fraud, Error and Recovery) Bill will give the government the power to look at the bank accounts of people it suspects have committed benefit fraud.
In some cases, those who repeatedly ignore requests to pay back £1,000 or more in arrears will be hit with a two-year driving ban.
Introducing the Bill at its second reading in Parliament, work and pensions secretary Liz Kendall described it as "tough, but it is fair" and claimed it will "turn off the tap to criminals who cheat the system and steal law-abiding taxpayers' money".
But campaigners have told Yahoo News the new laws risk "fuelling stigma and deterring people from claiming the support they need".
"We need a benefits system that offers support, not suspicion," the charity Turn2Us said.
MPs have spoken out against the Bill, with some expressing concern over the extent of the government's powers to look at people's bank accounts, AI assistance to carry out the work, and whether it will target the wrong people.
Here's what we know about the bill so far - and what it could mean for you.
The key details of the fraud bill
The person under suspicion, the bank you hold an account with, and your employer all have a responsibility under the law to comply with the government to retrieve any missing money.
It is worth bearing the following details in mind.
The law covers payments made in fraud or error. Even if you were overpaid a benefit by the government, you are legally obligated to repay it or face the same repercussions as if you had fraudulently claimed a benefit.
You can be disqualified from driving for up to two years. However, this is expected to be implemented only in extreme cases. Courts could suspend driving licences following an application by the DWP if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay it back.
Banks and employers will have to carry out the government's orders. Whether they like it or not, banks and employers will have to comply with the government's requests to provide banking statements, salary details and extracting money from the suspect. If not, they will face repercussions themselves.
The definition of a bank goes beyond a high street branch. Under the bill, the government will be able to recover money from any establishment legally defined as a bank. This will also mean it can deduct what it is owed from crypto services in cryptocurrency.
The money you owe can be recovered through a joint account. However, it will only be taken from a joint account if a person does not have an individual one where repayments can be made in a reasonable amount of time.
The amount you owe can be taken from your salary. If you are in work and the government wants to take overdue payments from you, it will have the power to make deductions from the liable person’s salary. An employer is legally obliged to comply.
What happens if I'm under suspicion?
If you are under suspicion of fraud by the government, or action is already under way, a notice or order will be sent to you, your employer, or your bank. It will be one of the following:
Information notices: A letter sent by the government legally obliging a person to send certain information about themselves or the person suspected of fraud.
Recovery notices: A letter sent by the government notifying a person it will bring legal proceedings to recover the amount of money that person owes
Penalty decision notices: A letter sent by the government letting a person know it will impose a financial penalty and the reasons why
Penalty notice: A letter sent by the government requesting a penalty payment to be made before a certain date
Direct deduction order: An order to a person's bank to recover the amount that person owes in a lump sum or staggered payments
Deductions from earnings order: If you are in work and the government wants to take overdue payments from you, it will have the power to make deductions from your salary.
What happens next
If you are under suspicion from the government and employed, a letter may be sent to you notifying you are subject to a deductions from earnings order. The person has a 28-day window to either pay the government or challenge its decision.
If the order is upheld, it will come into effect 22 days from when a notice is sent to an employer, and to yourself.
If the government changes its mind, it is legally obligated to let the person know.
Any deductions will then be made from your salary. This is either through a lump sum, or a series of direct debits.
None of these deductions can be made if they will cause you to suffer hardship in meeting ordinary living expenses.
The deductions cannot exceed 40% of what is owed for the first payment, and 20% for the following payments.
The monthly salary the government assess will be the amount after any pension payments have been made, income tax and national insurance contributions.
An employer can also deduct from the liable person's earnings to cover the administrative costs of passing over their money to the government. These payments can also be suspended or restarted at any time.
Or, the money may be recovered from your bank through a direct deduction order. This means that the bank will automatically send payments to the government to recover the amount owed.
This may be repaid in a lump sum or staggered payments. Likewise, these deductions cannot exceed 40% for the first payment, and 20% for the following payments.
The bank is legally obligated to ensure that you repay the money to the government, even if it means it has to move that money into a separate holding account so that your balance does not fall below the amount requested.
If a bank account is under a direct deduction order, the account cannot be closed.
What if I leave my job?
If you change or leave your job, then you have to let the government know seven days before you do. If you are starting a new job, you have to supply a statement of expected earnings to the government.
This obligation also falls on a new employer. Within 10 days of their employee starting the new role, they need to let the government know and let them know the amount they will earn.
What penalties will I face?
The government may impose a penalty if it looks like a person has conspired to carry out fraud. It cannot exceed more than 100% of the amount owed.
They may also impose a penalty if it has failed to comply, with a daily rate of £300.
In addition, it may impose a penalty on employers or banks that do not comply.
You will receive a notice if the government imposes a penalty, and you will have 28 days to request a review of the decision before the amount is recovered.
You can also be hit with a late payment interest.
What are my rights?
Firstly, you have a right to request a review of an order, which will be carried out by a body independent of the government.
You have the right to appeal to a tribunal over a deduction from earnings order, including the amount taken.
What have MPs said?
While the Bill has received a swell of support in Labour ranks as well as across MPs from other parties, several have still stepped forward to query the Bill.
One of them, the chair of the work and pensions select committee, Labour MP Debbie Abrahams, said that while she believes it is right to tackle fraud, the Bill might disincentivise the most vulnerable in society engaging with the DWP.
"To many, the bill will be seen as more evidence not to trust the DWP, and not to engage," she added.
Another committee member, Steve Darling, said it was "too much of a Big Brother Bill" to receive his support.
The Liberal Democrat MP told the Commons: "There have been just seven working days between the first and second reading of the Bill.
"How can we back this bill until we know what safeguards are in place?"
Shadow work and pensions secretary Helen Whately said that the Conservatives support the Bill "in principle", but questioned how much testing of the new system had been done.
"The Horizon scandal is a reminder that computer systems don't always get it right," she added.