DWP Eligibility Verification powers bank account checks, Digi Mart USA News (United Kingdom): The Department for Work and Pensions (DWP) can now have the bank accounts of millions of pensioners and benefit claimants checked under new government powers. The measures are part of controversial new benefit fraud rules created by the Public Authorities (Fraud, Error and Recovery) Bill, which states: “The Government will begin implementing the Bill measures from 2026.”
At present, claimants on three types of pensions and benefit payments can have their bank accounts checked in this way. According to the DWP’s Eligibility Verification powers in the Bill information, “This power can only be used to obtain information on accounts that receive a specified DWP benefit, and any accounts linked to that benefit receiving account if they match the eligibility indicators set by DWP.”
The DWP says the measure will initially focus on benefits where incorrect payments are currently highest. Other benefits could be added in the future with the approval of Parliament through affirmative regulations.
State Pension is explicitly excluded from this power and cannot be added by regulations.
The DWP states it will have the power to require banks and other financial institutions to provide information to help verify a claimant’s entitlement to benefits and identify incorrect payments. Banks and other financial institutions will be required to review data they hold on accounts receiving a specified DWP benefit payment and match those accounts against eligibility indicators determined by DWP, defined within an Eligibility Verification Notice, and flag where the criteria have been met.
Critics have described these eligibility verification notices as bank spying powers. The rules state that banks can share only limited information in response to such a notice, and could face a penalty for oversharing, such as transaction information.
The DWP also says: “Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence.”
The DWP gives the example that, for Universal Credit, an individual cannot hold more than £16,000 in savings and remain eligible, unless that capital results from a specified exception. Where further inquiries or investigations are needed, the DWP will lead them, as it does now.
“A human will always be involved in any decision taken afterwards which may affect benefit awards or eligibility, as they are now,” the department said, stressing that the process will not be carried out by AI tools.
The rollout will be gradual. “DWP will be gradually rolling out the use of the Eligibility Verification Measure in a test and learn environment to allow for sufficient time for business to establish best processes.” When fully rolled out, the Department estimates it will identify between 50,000 and 100,000 overpayments each year as a result of the measure.
