The Department for Work and Pensions (DWP) has confirmed that its new bank account monitoring measures to combat benefit fraud will begin implementation from 2026. The plans, part of the Public Authorities (Fraud, Error and Recovery) Bill, are described by the government as 'the biggest fraud crackdown in a generation' and are expected to save taxpayers around £1.5 billion over five years.
Under the new Eligibility Verification Measure, banks and other financial institutions will be required to alert the DWP to claimants who may be breaching eligibility rules for means-tested benefits such as Universal Credit, Pension Credit, and Employment and Support Allowance. The DWP has emphasised that it will not have direct access to bank accounts or transaction details, and that the information shared will be strictly limited to identifying potential overpayments or fraud.
The government has published 11 detailed factsheets outlining the safeguards and measures to ensure the powers are used proportionately and effectively. A 'test and learn' approach will be adopted initially. Persistent benefit cheats who repeatedly fail to repay money owed could face driving bans of up to two years, and the DWP may also take money directly from fraudsters' bank accounts.
The DWP has stressed that any information shared through the scheme will not be shared on the presumption or suspicion that anyone is guilty of an offence. Banks and financial institutions could face penalties if they overshare information, such as transaction data. The bill also empowers the Public Sector Fraud Authority to take further action against fraud.
