In an article in the Manchester Evening News, Prime Minister David Cameron announced that the government is considering a range of options to reduce fraud and errors in the welfare system.
He said using credit-referencing agencies "to identify circumstances which are incompatible with the benefit claim" is one method being explored.
But Gabrielle Preston, CPAG policy officer, said this could stop families in need taking up benefits.
"While we recognise there is a need to minimise benefit fraud, it is currently at an all-time low [less than one per cent of claims]," she explained. "The system's complexity means £16bn is unclaimed by some of society's most vulnerable people. This initiative stigmatises the most vulnerable people and is likely to further reduce take-up of much needed benefits and tax credits."
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