CSPA, and our partner organisations in Later Life Ambitions (LLA), have echoed concerns raised by Sir Stephen Timms MP, about Government plans to allow the inspection of Pensioners bank accounts, as set out in the `Data Protection and Digital Information Bill` currently going through Parliament.
Sir Stephen spoke in a House of Commons debate at the end of November to criticise wide-ranging powers that Government amendments to the Bill would give ministers to inspect the bank accounts of people on social security and those in receipt of the State Pension. A particular concern is that the powers could be used in the future to mean-test the State Pension and other universal pensioner benefits.
The stated purpose of the Data Protection and Digital Information (DPDI) Bill is to create a new regime for digital rights and data protection in the UK. Ahead of its third reading in Parliament, the Government suddenly proposed new amendments, including a new Schedule and Clause, that would grant the Secretary of State the power to require banks, or other financial institutions, to provide personal data for anyone in receipt of benefits, including State Pensions.
The Government argues that the powers to inspect social security claimants bank accounts are to reduce fraud and error. However, when questioned in the House of Commons exchanges the Secretary of State for Works and Pensions, Mel Stride MP, said “I agree, to the extent that levels of fraud in state pensions is currently nearly zero, the power is not needed in that case. However the Government wish to retain the option should the position change in the future”.
As Lord Sikka commented in the House of Lords debate on the Bill on 19 December, “Why do the Government want to snoop on the bank accounts of pensioners when there is hardly any fraud? Do they have some plan to treat the State pension as a means-tested benefit? “ He also asked why the Government classified the State Pension as a “benefit” when the amount paid to a pensioner is determined by the number of years of National insurance contributions?
CSPA are working with our LLA partners and Parliamentary advisors in talking directly to MP`s and Peers to seek amendments to the Bill to safeguard the privacy of pensioners bank accounts. We will update members on this important issue through the website; and e-Newsletters; as well as The Pensioner.”