DWP begins bank checks on people claiming three benefits

Summarised from 2 outlets · Updated 1 Nov, 12:01 · Archive

The Department for Work and Pensions has started checking bank information for people claiming Universal Credit, Pension Credit or Employment and Support Allowance.

The Department for Work and Pensions has issued its first Eligibility Verification Notice, requiring banks and other financial institutions to check information relating to some benefit-receiving accounts. The system targets people claiming Universal Credit, Pension Credit or Employment and Support Allowance, and is designed to identify cases where someone may have undeclared savings affecting their entitlement or has remained abroad longer than benefit rules allow.

The DWP has stressed that the powers do not give officials access to people's bank accounts, transactions or spending information. Instead, financial institutions will check relevant accounts against specified eligibility rules and flag cases for potential investigation. The DWP emphasises that a flag will not itself indicate someone has committed fraud, and no decision about entitlement can be made solely using information from the new system.

The DWP estimates fraud and error involving undeclared savings and time spent abroad in relation to Universal Credit and Pension Credit cost taxpayers £1.5 billion in 2025-26. The Eligibility Verification Measure is expected to generate £1.2 billion in savings by 2030-31. Minister for Innovation, Fraud and Debt Lilian Greenwood said the new powers will help crack down on those who deliberately abuse the system while ensuring people receive appropriate support.

How it is being reported

• New DWP bank checks begin for people claiming three benefitsNew bank checks targeting people claiming three benefits have begun as part of a major Department for Work and Pensions crackdown on fraud and error.Malvern Gazette · 1 Nov, 11:44
• New DWP bank checks begin for people claiming three benefitsNew bank checks targeting people claiming three benefits have begun as part of a major Department for Work and Pensions crackdown on fraud and error.Worcester News · 1 Nov, 11:44

In this story: Department for Work and Pensions · Universal Credit · Pension Credit · Employment and Support Allowance · Lilian Greenwood

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