The Department for Work and Pensions staff will be given powers to compel banks to hand over information on people claiming benefits.

The new bank account checks - which have been branded a "snooper's charter" by critics - have sparked widespread fury.

Privacy and civil liberties NGO Big Brother Watch has spearheaded a joint letter to Liz Kendall, Secretary of State for Work and Pensions, to scrap plans to spy on all of our bank accounts on the premise of detecting welfare fraud and error.

Joined by over a dozen NGOs, including Privacy International, Age UK, and Disability Rights UK, Big Brother Watch’s letter warns that these plans are eerily similar to Conservative Party plans for mass bank account surveillance, which were defeated only three months ago.

They wrote: "Imposing suspicionless algorithmic surveillance on the entire public has the makings of a Horizon-style scandal – with vulnerable people most likely to bear the brunt when these systems go wrong," it has said.

“Pensioners, disabled people, and carers shouldn’t have to live in fear of the government prying into their finances.”

The new powers were confirmed last week, and government officials and MPs will hand out more details as more regulations are finalised.

The DWP has spoken out amid the widespread fury over the planned new powers.

A spokesperson said: “These claims are false. These powers will be used appropriately and proportionately through robust, new oversight and reporting rules, and our staff will be trained to the highest possible standards.

"The information provided by banks is unrelated to DWP algorithms and any signals of potential fraud will always be looked at comprehensively by a member of staff.”