DWP gains powers to check bank accounts of benefit claimants

Summarised from 4 outlets · Updated 27 Oct, 17:29 · Archive

The Department for Work and Pensions can now require banks to check accounts of claimants on three key benefits against eligibility criteria.

The Department for Work and Pensions can now require banks and financial institutions to check accounts receiving certain DWP payments against Government eligibility criteria. The new powers form part of the Public Authorities (Fraud, Error and Recovery) legislation and are being introduced gradually, initially focusing on three payments identified by the Government as having the highest rates of incorrect payments.

State Pension is specifically excluded from the measure, meaning recipients of their normal State Pension will not face account checks under these particular powers simply for receiving that pension. Other benefits could potentially be included in future, though this would require approval from Parliament.

The powers do not give the DWP unrestricted access to claimants' bank accounts or spending habits. Instead, financial institutions check accounts against indicators contained in an Eligibility Verification Notice. Where an account meets one of those indicators, only limited information can be supplied to the DWP. This includes identifying details such as sort code and account number, information about the account holder including name and date of birth, and information showing how the account met the relevant eligibility indicator.

Banks are not permitted to provide details of individual transactions under this process and could face penalties for sharing information beyond what is allowed. The checks are therefore not designed to reveal where somebody shops, what they buy or how they spend their money.

The Government states the measures are designed to help identify fraud and incorrect payments. Information passed to the department does not in itself mean the account holder is suspected of committing an offence.

How it is being reported

• DWP now checking bank accounts of those claiming pensions and benefitsThe Department for Work and Pensions (DWP) can now have the bank accounts of millions of claimants on three key benefits checked under new government powers.Gazette & Herald · 27 Oct, 16:59
• DWP now checking bank accounts of those claiming pensions and benefitsThe Department for Work and Pensions (DWP) can now have the bank accounts of millions of claimants on three key benefits checked under new government powers.Swindon Advertiser · 27 Oct, 16:59
• DWP now checking bank accounts of those claiming pensions and benefitsThe Department for Work and Pensions (DWP) can now have the bank accounts of millions of claimants on three key benefits checked under new government powers.This Is Wiltshire · 27 Oct, 16:59
• DWP now checking bank accounts of those claiming pensions and benefitsThe Department for Work and Pensions (DWP) can now have the bank accounts of millions of claimants on three key benefits checked under new government powers.Wiltshire Times · 27 Oct, 16:59

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

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