Pensioners could face new bank account inspections as the Government cracks down on benefit fraud.
The new powers, which are being considered, would see banks handing over customer data to the Department for Work and Pensions (DWP) if there are concerns that the claimant does not meet the eligibility criteria for their benefits.
Some MPs have said the proposed legislation paves the way for snooping and a "step too far".
It comes as DWP figures suggest an estimated £8billion a year is lost to fraud and overpayment.
Pensioners could face new bank account inspections as the Government cracks down on benefit fraudGettyCurrent laws only allow the DWP to check someone’s bank account if they are suspected to be committing fraud.
Claimants are expected to report any changes in their financial circumstances, such as large cash payments, which would disqualify them for benefits.
Experts claim Universal Credit in particular is where significant overpayments due to fraud and error will be controlled using the new laws.
But as part of the process, those receiving state pension will be swept up with the move.
LATEST DEVELOPMENTS:
Sir Stephen Timms, chair of the work and pensions committee has questioned why certain social security payments should be covered by the rules.
"Ministers should take new powers to intrude into the lives of citizens only when absolutely essential. What is being proposed is a step too far," he told The Telegraph.
"With means tested benefits like Universal Credit, it is clear why ministers want such powers. But the Government has not made a convincing case for taking these powers for the state pension, Personal Independence Payment or child benefit.
"In fact, there appear to be no firm plans for using the powers at all.
Current laws only allow the DWP to check someone’s bank account if they are suspected to be committing fraud (stock image)
PEXELS"The Government has a chance to put things right as the legislation progresses through the Lords by dropping the unnecessary parts of these plans."
The Government has hit back saying legislation will not bring about surveillance powers, as there will be no direct access to bank accounts will be shared with third parties.
Information Commissioner, John Edwards wrote to ministers with "concerns", adding powers did not have "appropriate safeguards".
He said: "While I agree that the measure is a legitimate aim for government, given the level of fraud and overpayment cited, I have not yet seen sufficient evidence that the measure is proportionate."
