The UK banking industry has warned that government plans to crackdown on benefit fraud could leave banks at risk of breaking consumer protection rules.
A new law unveiled on Wednesday would allow the Department for Work and Pensions (DWP) to reclaim money from accounts without a court order.
Ministers argue this will speed up the debt recovery process and help contribute to a wider crackdown on benefits fraud.
But UK Finance, the biggest business group representing British banks, has told the BBC the plans could undermine the banks’ own efforts to protect vulnerable account holders.
The government’s announcement on Wednesday is the culmination of years of work by officials in DWP about how to more closely involve banks in benefit fraud crackdowns.
Similar plans drawn up by the previous Conservative government failed to make it through Parliament before last July’s general election.
The banking sector is understood to have been quietly lobbying against the plans for more than a year, but this is the first time they have raised concerns publicly.
A poster with an image of the face of the Statue of Liberty, with her hands covering her face, is displayed at a January 18, 2025 rally held in Paris, France just days before U.S. President Donald Trump’s inauguration.(Photo: Owen Franken – Corbis/Getty Images)
“Trump isn’t king, but if Congress capitulates, he could be,” warned the leaders of Popular Democracy.
Since U.S. President Trump’s return to office on Monday—at an inauguration ceremony full of American oligarchs—as the Republican has issued a flurry of executive orders and other actions, progressive leaders and organizers have expressed alarm and vowed to fight against his “authoritarian” agenda.
“In the last 24 hours, Trump has passed dozens of executive orders—many beyond his powers,” said Popular Democracy co-director Analilia Mejia and DaMareo Cooper in a Tuesday statement. “Yet, not one of them has lowered prices or made life better for Americans. Instead, he’s focused on eroding democracy, attacking constitutional rights, and spreading fear, cruelty, and chaos.
“Trump has taken aim at the 14th Amendment’s rights of equal protection and citizenship—the fundamental American right to live and participate in our democracy—with an executive order targeting birthright citizenship,” they noted, referencing a policy that is already facing legal challenges from immigrant rights groups and state attorneys general.
Check out the latest from @GregTSargent. It illustrates how Trump is immediately using the favorite tools of authoritarians, including ignoring/undermining laws, villainizing “others” (here, immigrants), and using propaganda to change the “facts” and galvanize public opinion. https://t.co/f4BLgQ086i
Announcing one of the lawsuits, ACLU executive director Anthony Romero said that “this order seeks to repeat one of the gravest errors in American history, by creating a permanent subclass of people born in the U.S. who are denied full rights as Americans. We will not let this attack on newborns and future generations of Americans go unchallenged. The Trump administration’s overreach is so egregious that we are confident we will ultimately prevail.”
Mejia and Cooper said that “his ineffective and inhumane executive orders targeting immigrants misuse military power and double down on damaging our communities.”
The group America’s Voice similarly expressed concern over Trump’s “authoritarian notions of deploying the military on U.S. streets,” with the group’s executive director, Vanessa Cárdenas, saying that “this is an attack on American families and our American values. Trump’s framing of our nation being ‘invaded’ coupled with the attacks on birthright citizenship and policies that will throw our immigration system further into chaos show that this is a hateful campaign to justify a nativist agenda that seeks to redefine ‘American’ and move this nation backwards.”
Popular Democracy’s leaders also called out various other items from Trump’s first day that are expected to face legal hurdles—though the Republican spent his first term working with GOP lawmakers to pack the federal judiciary, including the U.S. Supreme Court, with far-right appointees, so the effectiveness of such suits remains to be seen.
“Trump’s rollbacks of critical climate policy sell out future generations to the profit of oil and gas polluters, and further endangers the poor, Black, brown, and Indigenous people who have been at the frontlines of climate disaster,” they said. Trump not only repealed various Biden-era policies but also declared a “national energy emergency” to “drill, baby, drill” for fossil fuels.
Climate campaigners slammed Trump for invoking “authoritarian powers on Day 1 to gut environmental protections,” in the words of the Center for Biological Diversity. The organization’s executive director, Kierán Suckling, vowed that “no matter how extreme he becomes, we’ll confront Trump with optimism and a fierce defense of our beloved wildlife and the planet’s health.”
“The United States has some of the strongest environmental laws in the world, and no matter how petulantly Trump behaves, these laws don’t bend before the whims of a wannabe dictator,” Suckling stressed. “The use of emergency powers doesn’t allow a president to bypass our environmental safeguards just to enrich himself and his cronies.”
New in PN: The "find out" phase begins
"Trump’s campaign was ugly, dystopian, and authoritarian. His first presidency was a disaster. A near majority of voters pulled the lever for him anyway. Put bluntly, we, as a country, fucked around. And now …" https://t.co/TbGniPu3pP
The president’s attacks on health are expansive. As Mejia and Cooper detailed: “Trump’s sweeping changes to healthcare will rip away access for millions, line the pockets of Big Pharma, and undo strides in reproductive rights. They also single out trans Americans, denying them lifesaving healthcare and the right to live freely and authentically.”
Imara Jones, a Black trans woman, CEO of TransLash Media, and an expert on the anti-trans political movement, said in a Tuesday statement that “Trump’s recognition of only ‘two genders’ means a war on trans people, as well as any cis person with a gender expression outside of the gender binary.”
“This is not political theater, this is the beginning of a potential authoritarian takeover of the United States, one that starts with targeting one of the smallest and most vulnerable groups: transgender people,” Jones emphasized. “They seek to erase trans people from public life and want to see if they can get away with it, as a prelude to much more. This should worry all of us.”
Another development that provoked intense worry—and even led the Lemkin Institute for Genocide Studies and Prevention to issue a “red flag alert for genocide in the United States”—was Elon Musk, the richest person on Earth and a key Trump ally, twice raising his arm in what was widely seen as a Nazi salute during a post-inauguration celebration.
Trump’s Monday night decision to pardon over 1,500 people who stormed the U.S. Capitol on January 6, 2021, an insurrection incited by the president himself as he contested his 2020 electoral loss, elicited similar warnings.
“By granting clemency to these individuals, who sought to overturn the peaceful transfer of power, Trump is signaling that political violence and the rejection of democratic norms are acceptable tactics in service to his authoritarian agenda,” said Our Revolution executive director Joseph Geevarghese. “This is a direct threat to the foundations of our democracy and the safety of our communities.”
The leaders of Popular Democracy highlighted that “undergirding this extreme authoritarian agenda is a claim that Trump has a mandate to act like a despot—no such mandate exists, much less is acceptable to the American people.”
“Trump isn’t king, but if Congress capitulates, he could be,” they warned, just weeks after Republicans took slim control of both chambers. “Popular Democracy is prepared to push back against Trump’s assault on our communities. We will stand up against an unconstitutional power grab, and hold our representatives accountable in this fight.”
Police officers at a national march for Palestine in central London, January 18, 2025
OVER 40 legal experts have signed a letter to the Home Secretary demanding an independent investigation into the Met’s policing of London’s pro-Palestine protest at the weekend.
Saturday’s rally was met with a heavy-handed police presence which saw the arrest of 77 protesters — the most at any national demonstration for Palestine.
…
Organisers said there were a “series of complex restrictions” preventing people from assembling at Whitehall at various times, which resulted in arrests on “ flimsy pretexts including simply for inadvertently standing in this central area at the wrong time.”
The Met claims that protesters broke through police lines in a co-ordinated effort to breach the conditions.
But protest organisers backed by video footage contest this, stating that a small delegation, including an 87-year-old Holocaust survivor, who were seeking permission to lay flowers, were invited through.
Among those arrested was Stop the War’s Chris Nineham, chief steward of the protest, who has since been banned from attending demonstrations as part of his bail conditions.
Ben Jamal, director of the Palestine Solidarity Campaign which helped organise the protest, was also subsequently charged with offences under the Public Order Act.
Campaigners warn DWP proposals could be counterproductive and create a two-tier justice system
PLANS to ban benefit fraudsters from driving and seize money from their bank accounts will create a two-tier justice system that destroys innocent lives, campaigners warned today.
The elderly, disabled and hard-up families would face “totally unprecedented privacy intrusions and punishments” under proposals by the Department for Welfare and Pensions (DWP).
Employment minister Alison McGovern insisted that banning benefit cheats from driving would be a “backstop” used in “extreme” cases ahead of the Public Authorities (Fraud, Error and Recovery) Bill’s introduction to Parliament today.
But director of privacy and civil liberties campaign group Big Brother Watch Silkie Carlo said: “We must be extremely cautious about the government creating a second tier justice system, reserved for people who rely on welfare, that side-steps fair hearings in courts to take away people’s funds and freedoms.
“The public and Parliament will rightly be very sceptical about empowering the government to go directly into anyone’s bank accounts to take our money and even our driving licences, least not to target the elderly, disabled and people on the poverty line whose lives could be destroyed by mistaken punishments.”
Public and Commercial Services (PCS) national president Martin Cavanagh said: “While PCS understands the government’s desire to deal with benefit fraud, it should not be their main priority right now, and these proposals will be counterproductive.
“The reality is that is public funds lost to benefit fraud are a drop in the ocean compared to revenues lost through tax avoidance and evasion. This should be the government’s focus if they are serious about boosting the economy and bringing monies into the Exchequer.
“PCS is at a loss to understand how taking away driving licenses, thereby reducing opportunities to work, can help achieve their stated aims.”
Work and Pensions Secretary Liz Kendall speaking to the media outside the Department for Work and Pensions in Westminster, London, December 17, 2024
LABOUR’S repeated attacks on disabled people are cynical, cruel and, in providing an excuse to legislate for ever-greater state intrusion into private citizens’ lives, a threat to all our freedoms.
Liz Kendall chases headlines with the latest gimmick (banning those found guilty of benefit fraud from driving). More sinister is the resurrection of Tory plans to make banks share information from private accounts and powers for the Department for Work and Pensions (DWP) to seize funds without a court process.
The state already has ample power both to detect and punish benefit fraud: it can make banks share clients’ financial information if there is suspicion of fraud, while those found guilty can be jailed for up to 10 years (courtesy of Keir Starmer in a previous iteration, as director of public prosecutions egging on the then Conservative-Lib Dem coalition’s war on welfare).
This is not about fighting crime. Nor even about cutting costs: benefit fraud amounts to less than 3 per cent of social security spending, and ministers say the new legislation is aimed at saving £1.5 billion over five years, an almost irrelevant sum given annual spending on social security excluding pensions is over £130bn.
It is about creating a climate of fear.
The approach echoes that toward immigration, where endless scaremongering about “small boats” obscures the rarity of such arrivals compared to immigrants who arrive legally.
