A new government bill would force banks to carry out “mass surveillance” of millions of innocent disabled people and other benefit claimants, MPs have been warned.
The measures in the bill would force banks to examine individuals’ accounts for potential breaches of benefit eligibility rules, and then pass that information to the Department for Work and Pensions (DWP).
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Work and pensions secretary Liz Kendall told MPs on Monday that the measures would force banks to provide data to “help identify incorrect benefit payments people might be getting, including fraudulently, such as if someone has too much in savings, making them ineligible for a benefit, or if they are fraudulently claiming benefits abroad when they should be living in the UK”.
But independent MP Zarah Sultana said the “algorithm-driven financial surveillance” allowed by the bill would lead to errors that would disproportionately affect disabled and older people and “those already struggling to make ends meet”, and create “a two-tier justice system”.
She said: “Even a one per cent error rate in the AI system used by banks could lead to thousands of benefit recipients being wrongly flagged, unfairly investigated and forced into lengthy appeals.”
She said the bill would allow “mass surveillance” and was “deeply unjust” and would “subject millions of innocent people – disabled individuals, carers, jobseekers, pensioners and parents – to unwarranted financial surveillance, treating them as suspects by default, simply because they receive state support”.
It would, she said, turn banks into “agents of the state”.
Another independent MP, John McDonnell, the former Labour shadow chancellor, said the government was seeking powers for a “mass surveillance exercise”.
He said: “The reason why people will feel that it is unfair is that it specifically targets people who are often in desperate need.
“If there was a group of people whose accounts we would want to monitor because there has been a history of fraud, and who have had to pay money back – some have gone to prison – it would be MPs; I was here during the expenses scandal.”
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