ICO to ensure data protection laws are upheld at DWP

Department is considering liaising with store card organisations and Nectar in bid to prevent fraud

Christopher Graham wants a meeting with the DWP over data protection

The Information Commissioner, Christopher Graham, has argued that one of the Department for Work and Pension's (DWP’s) ideas for cutting benefit fraud may contravene the Data Protection Act, and has asked for a meeting with the DWP to discuss it.

The idea proposed would see the department working with credit reference agencies and other organisations that collect data around spending habits.

One spokesperson from the DWP cited companies that run store cards or Nectar, the card that aggregates data on spending habits for Sainsbury’s and others, as potential targets for data sharing.

“If the private sector can get access to spending information before it decides whether to issue a store card, why shouldn’t we be able to access the same data before issuing benefits,” he said.

The DWP said it had cut housing benefit fraud considerably by liaising with credit company Experian. “Someone claiming housing benefit might say they’re living on their own but be living with an in-work partner, this is the sort of information we have been able to get from Experian.”

The spokesperson stressed that any firm decision on data sharing would not be made until the department publishes its benefit fraud reduction strategy in the autumn.

In his letter to the welfare reform minister at the DWP Lord Freud, the Information Commissioner suggested a meeting and said: "I hope the government is going to hold to the good practice of considering the data protection implications of policies at the earliest stage."

Graham added: "It is reasonable to expect that if you are committing benefit fraud your details will be shared with the appropriate authorities dealing with this. But any information sharing should be made clear in privacy policies. Credit reference agencies handle sensitive personal information. We work closely with the agencies and industry representatives to ensure the industry complies with the requirements of the Act.”