The new powers letting the Department for Work and Pensions ask banks to check benefit claimants’ accounts are no longer just on paper.
On October 26, the government told Parliament that DWP has sent its first Eligibility Verification Notice to a bank. It’s the first time the department has used the powers, which come from the Public Authorities (Fraud, Error and Recovery) Act 2025. It’s starting small, as a trial, but it’s a significant step. Here’s what it means if you claim benefits.
Which benefits are covered
The checks apply to accounts receiving:
- Universal Credit
- Pension Credit
- New Style Employment and Support Allowance
The State Pension isn’t on this list.
What the banks look for
Banks don’t hand over your statements. Instead, DWP gives them a set of rules, and the bank checks whether an account matches one of two signals:
- Savings over the limit: money in the account above the capital limit for that benefit, for example £16,000 for Universal Credit
- Time abroad: overseas transactions suggesting someone has been out of the country longer than their benefit allows
If an account matches, the bank sends back only limited information, such as the name, account details, the balance and the date of an overseas transaction. The checks can also cover joint accounts and accounts that receive benefits on someone else’s behalf.
What banks won’t share
- no access to your online banking
- no full statements
- no details of what you spend your money on
- no sensitive personal information or where your transactions happened
Minister Lilian Greenwood said banks “will simply be asked to identify if somebody may no longer meet the rules,” and that DWP isn’t interested in where people shop.
Why it’s being done
DWP says the measure will save taxpayers about £1.2 billion by 2030/31 by catching overpayments earlier. Ministers say it will also stop people building up large debts they then have to repay.
What happens if your account is flagged
A match isn’t a finding of fraud and doesn’t change your benefit on its own. Trained DWP staff review each case, and you may be asked for more information, for example to explain where some money came from or to confirm your travel dates.
A cautious start
The government says this is a controlled “test and learn” phase. Greenwood said DWP will look at how the system works, the quality of the data, the effect on staff and the outcomes for claimants before expanding it. How the trial goes will decide how far, and how fast, the checks are rolled out.
What you should do
- Keep DWP up to date. Report changes in savings, someone moving in, or long trips abroad as soon as they happen.
- Know your benefit’s limits. For Universal Credit, savings over £6,000 reduce your payment, and you can’t usually get it with more than £16,000. Pension Credit has different rules on savings, and some benefits limit how long you can be abroad.
- Keep records of one-off payments into your account, such as a gift, an insurance pay-out or money you’re holding for someone else.
- Answer DWP letters quickly if you’re asked for information.
Watch out for scams
DWP won’t text or email asking for your online banking login or PIN to “verify your account.” These checks happen between DWP and your bank. You don’t need to do anything to take part.
Sources: UK Parliament, Written statement HCWS415 (October 26, 2026), Benefits and Work and Brit Brief.
Maria is a dedicated news writer covering the latest UK updates on DWP, PIP, State Pension Triple Lock, Child Benefit, Universal Credit, and driving licence regulations. She focuses on explaining government announcements, benefit eligibility, payment changes, pension increases, and new regulations in a clear and easy-to-understand way.