The Department for Work and Pensions (DWP) has issued an urgent alert affecting approximately 1.6 million benefit claimants across the UK. Millions receiving key benefits including Universal Credit, Personal Independence Payment (PIP), and the State Pension must immediately update their bank account details or risk severe payment disruptions.
Why This Banking Change Affects You
The DWP is accelerating its migration away from the older Bank Account Verification (BAV) system to the more modern Confirmation of Payee (CoP) service. This critical security upgrade is designed to combat fraud and prevent mistaken payments, but requires claimants to ensure their bank participates in the new verification scheme.
Benefits at Immediate Risk
This change impacts recipients of all major DWP-supported benefits, including:
- Universal Credit
- State Pension
- Personal Independence Payment (PIP)
- Employment and Support Allowance (ESA)
- Jobseeker's Allowance (JSA)
- Attendance Allowance
- Disability Living Allowance
- Carer's Allowance
- Pension Credit
- Industrial Injuries Benefit
- Industrial Death Benefit
How to Check If Your Bank Is Compatible
Most major high street banks including Barclays, HSBC, Lloyds, NatWest, and Santander already support the Confirmation of Payee system. However, numerous smaller building societies and digital banks have not yet implemented the required technology.
The DWP recommends contacting your bank directly to confirm their participation in the CoP service. If your bank does not support the new system, you may need to switch to a compatible provider to continue receiving your benefits without interruption.
What Happens If You Don't Act?
Claimants who fail to update their banking details or whose banks remain non-compliant face the very real possibility of missed or suspended payments. The DWP has confirmed it will attempt to contact affected individuals, but ultimately the responsibility lies with claimants to ensure their payment details are current and compatible.
This change comes during a ongoing cost of living crisis, making timely benefit payments more crucial than ever for millions of households relying on this financial support.
Immediate Action Required
If you receive any DWP benefits, you should:
- Contact your bank to confirm they support Confirmation of Payee
- Update your account details via your Universal Credit journal or relevant benefits portal
- Consider switching banks if your current provider doesn't support the new system
- Monitor your payments closely in the coming weeks
The migration is already underway, with the DWP urging swift action to prevent any disruption to essential financial support.
