The Department for Work and Pensions (DWP) is set to intensify its efforts against benefit fraud starting in October, targeting recipients of Universal Credit, Employment and Support Allowance, and Pension Credit. This initiative comes under the new Public Authorities Fraud Error and Recovery Bill (PAFER), which grants the DWP enhanced authority to identify and recover erroneous benefit payments that cost the welfare system significant funds.
One of the key measures introduced by PAFER is the Eligibility Verification Notice (EVN), which allows the DWP to request information directly from banks regarding claimants' financial accounts. This process could lead to the department accessing bank accounts to recover money owed from those who have been overpaid benefits.
The DWP has highlighted that accounts linked to Universal Credit recipients holding more than £16,000 may be subject to scrutiny. “Eligibility indicators in an EVN may require financial institutions to provide information on accounts associated with Universal Credit recipients that exceed the £16,000 capital threshold,” the department explained. Furthermore, the criteria may be adjusted to include reviewing accounts with balances between £6,000 and £16,000, since Universal Credit payments are gradually reduced when claimants hold savings within this range.
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Cabinet Office Minister Satvir Kaur emphasised the importance of these new measures, stating, “Fraud against the public sector and unrecovered debt deny our vital frontline services the funding they deserve. Under the new powers granted by the PAFER Act, this government will honour its commitment to protect hardworking taxpayers and crack down on those attempting to cheat the system.”
The enforcement of these powers will commence in a phased approach from October 2026, as announced by the DWP earlier this year.