DWP uses new bank powers to check benefit eligibility

Summarised from Manchester Evening News's report · Updated 26 Oct, 13:19 · Archive

The Department for Work and Pensions has used new powers for the first time to ask banks to share information about claimants.

The Department for Work and Pensions (DWP) has confirmed it has used new powers for the first time after new laws were implemented earlier this year. The Eligibility Verification Measure (EVM) will ask banks to help identify claimants who may have undeclared savings or those who remain abroad longer than benefit rules allow.

Introduced as part of the Public Authorities (Fraud, Error and Recovery) Act 2025, the measures are expected to help detect fraud, reduce incorrect payments and protect taxpayers' money. The DWP expects the scheme to save taxpayers £1.2 billion by 2030/31 and contribute to the Government's wider drive to save £14.6 billion over the next five years. It will also help identify incorrect payments sooner, reducing the risk of overpayments building up and claimants falling into avoidable debt.

DWP Minister for Innovation, Fraud and Debt Lilian Greenwood said: 'Benefit fraudsters should be looking over their shoulder.' She added the new powers would help crack down on those who deliberately abuse the system, while ensuring people receive the right support at the right time. Banks will simply be asked to identify if somebody may no longer meet the rules for the benefits they receive, allowing the DWP to investigate further where necessary.

Read the report

• DWP confirms first use of bank checking powers under major new lawThe DWP warned that benefit fraudsters "should be looking over their shoulder"Manchester Evening News · 26 Oct, 12:43

In this story: Department for Work and Pensions · Lilian Greenwood · United Kingdom

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