Ministers last week rushed an amendment through the Commons, allowing it to look into the bank account of everybody claiming State Pension. Their only reason was that it might be useful one day. The only change which could make it useful would be to means test the State Pension pic.twitter.com/aRRLPWkHLf
— Sir Stephen Timms (@stephenctimms) December 3, 2023
Stephen Timms is not alarmist, nor is he a conspiracy theorist. For the quarter of a century he has involved himself in the politics of pensions , I have never seen him agitated. But the tweet above suggests that he is seriously concerned at the powers the Digital Communications Bill gives to Government.
So is Prem Sikka and so Paul Lewis
Accounting professor and peer Lord @premnsikka warns of new powers to investigate bank accounts is aimed at people on benefits not tax evaders https://t.co/7JoQ0Wm1L9
— Paul Lewis (@paullewismoney) December 4, 2023
Writing in the Left Foot Forward blog, Prem evokes George Orwell’s 1984, though the new tyranny isn’t ushered in by some communist, socialist or military regime but by a right-wing elected government. Prem does not hold back
The Bill uses developments in electronic transactions and artificial intelligence to place the poor, disabled, sick, old and pregnant women under surveillance. It gives Ministers and government agencies powers to direct businesses, particularly banks, and financial institutions, to mass monitor individuals receiving welfare payments, even when there is no suspicion or any sign of fraudulent activity. No court order is needed and affected individuals will not be informed. The Bill enables Ministers to make any further regulations without a vote in parliament.
Until recently , access to 22.4m people’s bank accounts might have been laughed off as a fantasy of Orewllian proportions, but Orwell may have foreseen artificial intelligence which is capable of shortlisting potential offenders for aberrant financial transactions.
Gift your grandchildren a nest-egg after pawning your wedding ring and you could find yourself a suspect of benefit fraud.
But the implications of Stephen Timms’ tweet are even more serious. If Government can turn the lens used to catch benefit cheats on those whose pecunity lifts them out of dependency on the state pension, if can means-test the benefit , denying it to those more than just getting by.
Prem was writing from the House of Lords, Stephen Timms from the House of Commons. Their party, the Labour Party abstained from voting on the amendment , perhaps mindful that “it may be useful one day” was a phrase that applied rather more to them than from the current Government.
It is important that Government , of whatever hue , is not entitled to overstep the perimeter of personal financial privacy. In my view, the granting of digital access to personal bank accounts to benefits claimants goes well beyond the current laws that allow access on special request.
As for the state pension, if it is to become a means tested benefit, them the incentive to save into workplace pension diminishes. Why save for your state pension, when your national insurance gets it you anyway?
