New legislation has granted the Department for Work and Pensions (DWP) enhanced authority to examine the bank accounts of certain benefit claimants in an effort to reduce fraud. Under this law, banks are obliged to share information regarding accounts linked to specific benefits.
However, not all benefits fall under this scrutiny. According to reports from CambridgeshireLive, the State Pension is explicitly excluded from these new rules.
Known as the Eligibility Verification Measure, this initiative will initially focus on recipients of Universal Credit, Pension Credit, and Employment and Support Allowance. There is potential for other benefits to be included in the future, but any such expansion would require parliamentary approval.
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A government document explains that the DWP will implement the measure gradually in a “test and learn environment” to refine processes effectively. The aim is to generate £2.1 billion in savings over five years, contributing to a broader £14.6 billion expected from various fraud prevention efforts.
Because the State Pension is a non-means-tested benefit, it remains outside the scope of eligibility checks and cannot be added—nor accessed—under the current legislation.
A DWP spokesperson clarified, “The Eligibility Verification Measure requires banks to share limited data on claimants who may be improperly receiving benefits. It does not grant direct access to claimants’ full bank accounts.”
In addition to checking accounts, the legislation empowers the DWP to withdraw owed funds directly from bank accounts when claimants have outstanding debts and refuse to repay. Previously, recovery options were restricted to deductions from benefits or PAYE salary.
Banks and financial institutions must comply with Eligibility Verification Notices within strict deadlines to avoid penalty notices. They also face fines for any improper disclosure of confidential information related to these checks.
The DWP has assured the public that no personal data beyond specified limited information will be disclosed and that the expansion of covered benefits will undergo careful parliamentary scrutiny.