By Levi Winchester

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The Department for Work and Pensions ( DWP ) will be able to request data from pensioner bank accounts as part of new measures to tackle benefit fraud. The new Public Authorities (Fraud, Error and Recovery) Bill will give the Government power to recover money straight from bank accounts of those who have committed benefit fraud. Banks will be required to report any suspicious activity, while the DWP will also be able to request bank statements of those who are under investigation. The DWP will not have direct access to bank accounts. The new Bill, which is due back in the House of Lords this month and is expected to come into force from April 2026, will extend to those claiming Pension Credit, according to the Telegraph . The latest figures show 1.36 million pensioners were claiming Pension Credit in February 2025. Overpayments of Pension Credit hit £610million in April 2025, with fraud accounting for £270million of this figure. The crackdown comes as part of wider Government plans to save £9.6billion over the next five years. An estimated £7.4billion was lost to benefit fraud last year. A DWP spokesman told the Telegraph: “In cases of fraud and error, a human will always make any decisions that affect benefit entitlement. “All powers in the Fraud, Error and Recovery Bill are underpinned by a principle of fairness and proportionality, with numerous safeguards and independent oversight in place. “We have a duty to the taxpayer and this Bill is set to save £1.5bn over the next five years, which together with wider reforms will save £9.6bn by 2030, according to OBR estimates.” Other measures included in the Bill are DWP organised crime investigators being allowed to apply to for search warrants to seize evidence against fraudsters, including computers and smartphones. The time limit for civil claims against Covid fraud will also be doubled from six to twelve years. The DWP provides benefits to nearly 24 million people. DWP minister Liz Kendall said back in March: “The social security system that we inherited from the Conservatives is failing the very people that it is supposed to help and is holding our country back. “The facts speak for themselves. One in 10 people of working age are now claiming a sickness or disability benefit. Almost one million young people are not in education, employment or training – one in eight of all our young people. “Some 2.8 million are out of work due to long term sickness, and the number of people claiming Personal Independence Payments is set to double this decade from two million to 4.3 million, with the growth in claims rising faster among young people and those with mental health conditions.”