Six Labour MPs have sponsored the 'Government surveillance of bank accounts' early-morning motion, which has 23 additional members from different parties endorsed it. It says that the Data Protection and Digital Information Bill's expanded powers have "deeply alarmed" the members.

If the Bill is approved, banks and building societies would have to proactively provide the Department for Work and Pensions with information about account holders. The DWP is now limited to reviewing account information for those who are already suspected of fraud.

The motion states that the new authority would "force banks to spy on the 23 million individuals in the welfare system, including those who are disabled, sick, caregivers, jobseekers and pensioners, as well as on the private banking data of people related to them including partners, parents, landlords and other associates" .

A "Post Office Horizon-style scandal where innocent people suffered wrongful prosecutions, financial ruin, and reputational damage" is another concern raised by the MPs regarding the system's usage of AI to monitor accounts and report suspicious activities.

The motion, which asks for the new powers in the bill to be removed, claims that the government already has considerable authority under current legislation to examine the bank statements of fraud suspects.