PARLIAMENTARY WRITTEN QUESTION
(4 February 2025)

To ask the Secretary of State for Work and Pensions, whether she has made an assessment of the potential merits of pilot schemes for third party data sharing powers as set out in the Public Authorities (Fraud, Error and Recovery) Bill.

Asked by:
Helen Whately (Conservative)

The Third Party Data sharing powers were a proposal under the previous government, separate to the measures proposed in this Bill.

The Eligibility Verification Measure (EVM) is significantly different to the previously proposed Third Party Data power. EVM will be limited to information from banks and financial institutions only and will be used only for the purpose of helping to verify eligibility for benefits. The State Pension will be explicitly excluded, and it will be focussed initially on three benefits only: Universal Credit, Pension Credit and Employment and Support Allowance. A statutory Code of Practice will also be introduced and consulted on. There will be independent oversight reporting annually on the effectiveness of the measure and the legislation tightly defines what data can be gathered and for what purpose providing strong safeguards.

To demonstrate the feasibility and potential of using data from banks to help verify eligibility for benefits, DWP has already conducted two Proof of Concepts which consisted of establishing data-sharing collaborations with two high-street banks. These exercises showed promising results, for example in the first exercise around half of the matches generated for DWP to review led to a positive outcome for the department. Further information about these Proof of Concepts can be found in the published impact assessment for the Bill - Impact Assessment

The government is committed to rolling out the measure carefully through a test and learn approach to ensure it is workable and as effective as possible.

Answered by:
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