The Department for Work and Pensions (DWP) in the UK has faced accusations of spying as it confirms its controversial plan to use Artificial Intelligence (AI) to monitor the bank accounts of benefits claimants. The scheme, which is part of the Data Protection and Digital Information Bill, would allow investigators to access claimants’ bank accounts to track their financial transactions.
The use of AI in this process has now been officially confirmed by the government. Concerns have been raised about the potential for this system to become a digital stop and search, with critics arguing that it may infringe on individuals’ privacy rights. The issue was recently debated in the House of Lords, where members questioned the transparency and fairness of using AI in this manner.
In response to these concerns, Viscount Younger of Leckie assured the House that the government has established proper governance and safeguards to ensure the responsible use of technology. The DWP has implemented an AI steering board and an assurance and advisory group to oversee the implementation of AI in its operations. Additionally, the DWP maintains that it adheres to appropriate safeguards and monitoring protocols to protect the ethical and legal use of data.
Baroness Lister of Burtersett raised the issue of potential bias in the algorithms used to detect social security fraud. Viscount Younger of Leckie acknowledged the importance of addressing bias and stated that the DWP is committed to building trust in its use of AI. He emphasized that the presence of bias depends on the input of data and that the DWP has implemented risk profiles to ensure best practices.
Lord Bellingham highlighted the prevalence of fraud within the DWP and expressed support for the use of AI and algorithms to combat this problem. Viscount Younger of Leckie affirmed the DWP’s ongoing efforts to explore the potential of AI in fraud prevention. He clarified that AI is not used to replace human judgment when determining or denying payment to a claimant. Reviews by the National Audit Office and Information Commissioner’s Office have found no immediate concerns regarding the use of AI in these processes.
Despite the DWP’s reassurances, a petition opposing the spying on benefits claimants’ bank accounts has garnered over 82,000 signatures. Critics argue that the powers granted under the new legislation may be too wide-ranging and raise concerns about potential misuse.
Secretary of State for Work and Pensions, Mel Stride, addressed these concerns by stating that the powers are intended to combat fraud or error when there is a clear signal. He emphasized that these measures are not intended for widespread monitoring in the absence of such signals.
Assuming the bill is passed, the new checks are expected to commence in 2025, gradually intensifying until a full-scale crackdown is implemented in 2030. Banking staff will primarily be responsible for identifying accounts with savings exceeding the capital limit for benefits eligibility. For Universal Credit, the capital limit is currently set at £16,000, with exceptions for those transitioning from tax credits during the first 12 months.
The DWP dismisses claims of excessive surveillance and asserts that the objective of these measures is to ensure that benefits are correctly allocated and prevent fraud. Nevertheless, concerns persist about the potentially broad application of these powers and the safeguarding of individuals’ privacy rights.
