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DWP begins limited bank checks under new eligibility powers
The Department for Work and Pensions has issued its first eligibility verification notice to financial institutions. Banks will flag limited information that may justify further benefit checks. A flag is not proof of fraud, and entitlement cannot be decided on that information alone.
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From ২৭ অক্টোবর ২০২৬ — UK Daily Brief
27 OCT 2026 · 12/25
The Department for Work and Pensions issued its first Eligibility Verification Notice on Monday, beginning a controlled trial of new powers intended to detect incorrect benefit payments.
Financial institutions must check relevant benefit-receiving accounts against indicators such as capital limits and permitted time abroad. Limited information is returned when an account meets an indicator.
The measure covers Universal Credit, Pension Credit and New Style Employment and Support Allowance in England, Scotland and Wales. Relevant linked accounts can also fall within scope.
The powers do not allow DWP to log into online banking or receive full statements and spending histories. The government says a flag prompts further enquiries rather than establishing fraud.
Benefit decisions will still be made by departmental staff using the relevant evidence. Information from this process alone cannot determine entitlement.
DWP forecasts savings of £1.2 billion by 2030–31. That is an estimate, with the initial phase intended to assess data quality and operational effects before wider rollout.