Chancellor Rachel Reeves has announced a "crackdown on fraudsters" operating within the benefit system as part of an overhaul of the Department for Work and Pensions (DWP).
The new Labour Government outlined this aggressive approach as part of its Autumn Budget earlier this afternoon in a move that will impact those falsely claiming Universal Credit and Personal Independence Payment.
This is part of the Chancellor's attempt to rein in wasteful spending and plug the £22billion "black hole" in the public finances.
In her speech, Reeves cited the "innovative methods" that will be used as part of this stricter regime which will reportedly save £4.3billion.
Under the the Fraud, Error and Debt Bill, banks and building societies will be legally obligated data that may help identify benefit fraudsters.
The "crackdown" on welfare scammers is an expansion of the DWP's existing counter fraud measures.
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The Government is cracking down on benefits cheats
GettyThe Chancellor explained: "Let me make this promise to the British people: never again will we allow a Government to play fast and loose with the public finances.
"Never again will we allow a government to hide the true state of our public finances from our independent forecaster."
DWP minister Liz Kendall has previously cited the Government's goal to crackdown on those gaming the system.
According to the Chancellor, Kendall will spearhead the reforms to the DWP through this Parliamanent.
Reeves added: "Today, I am also taking three steps to ensure that welfare spending is more sustainable.
“First, we inherited the last government’s plans to reform the work capability assessment.
"We will deliver those savings as part of fundamental reforms to the health and disability benefits system that the Work and Pensions Secretary (Liz Kendall) will bring forward.
"Second, I can today announce a crackdown on fraud in our welfare system often the work of criminal gangs. We will expand DWP’s counter-fraud teams using innovative new methods to prevent illegal activity and provide new legal powers to crackdown on fraudsters, including direct access to bank accounts to recover debt.
"This package saves £4.3billion a year by the end of the forecast."
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Last month, Mikey Erhardt, a campaigner at Disability Rights UK, warned that Labour's messaging would result in a "punitive system" that will target the most vulnerable.
He shared: "The Government’s latest plans are essentially a digital sledgehammer to crack the tiniest nut.
“These new powers could see millions deprived of the presumption of innocence, adding to the criminalisation we already face in a punitive welfare system that often seeks to sanction people into work, whether we are able to or not."
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