The Department for Work and Pensions (DWP) has published guidance on new bank monitoring powers under the Eligibility Verification Measure (EVM). The system will apply to Universal Credit, Pension Credit, and Employment and Support Allowance (ESA) claims.
Banks may be asked to flag accounts that meet certain "eligibility indicators," such as savings above £16,000 for Universal Credit or signs of spending more time abroad than benefit rules allow. The DWP says the checks aim to reduce fraud and error, and prevent large overpayments.
What banks can and cannot share
Financial institutions are prohibited from sharing transaction histories, spending details, or financial statements. They also cannot share special category data like political opinions, religion, ethnicity, or health information.
The DWP cannot ask banks to search for named claimants. Instead, banks apply criteria across their systems and return limited information only when accounts match the indicators. Shared data may include account details, names, dates of birth, and how the account met the indicator.
No automatic decisions
The DWP stresses that returned information does not automatically mean wrongdoing. The code states: "No decisions about benefit entitlement will be made automatically on this information alone." DWP staff must review the data alongside other evidence before deciding on further checks.
A "Test and Learn" phase will start with a small number of financial institutions before wider rollout, allowing the DWP to assess accuracy and safeguards.
The DWP estimates benefit fraud and error caused £9.6 billion in overpayments in the 2025/26 financial year.
