The Department for Work and Pensions (DWP) has explained how bank checks will operate for people claiming Universal Credit, Pension Credit or New Style Employment and Support Allowance (New Style ESA). The checks aim to prevent benefit fraud and error.
Under the Eligibility Verification Measure, the DWP can check whether a person is eligible for the benefit they are claiming. Banks and other financial institutions will be required to share information with the DWP when they receive an Eligibility Verification Notice. This helps identify if any incorrect benefit payments have been made.
What information banks can share
The DWP says banks will only share limited information to help identify incorrect benefit payments and check benefit entitlement. This may include the names of all account holders, details of any accounts held (including linked and joint accounts), account numbers, sort codes, information about how much money is in the relevant accounts, and the date of transactions that took place in another country.
The DWP cannot log into your online banking or see your account in real time. Benefit claimants are advised to keep their information up to date so they receive the correct amount of money. People must report any changes in their circumstances to the DWP. Any delay may mean you receive too much money and may have to make a repayment.
What happens after a bank check
If information shared by your bank suggests you may be getting an incorrect benefit payment, the DWP will review your claim. The review might find that you are not eligible for the benefit you are claiming or that the amount you are receiving is incorrect.
The DWP may then ask you to answer questions about your eligibility or provide further information to support your benefit claim. They will contact you through your online journal if you have an online account. If you do not have an online account, they may contact you by phone, letter or text message. The DWP warns: "You should respond as soon as possible to avoid your benefit payments being delayed or stopped."
What banks cannot share
Banks and other financial institutions cannot share full statements or transactions, how you spend your money, sensitive personal information about your background (such as political opinions or religious beliefs), or specific transaction locations. Banks can be fined if they share this information.
Government guidance states: "DWP will only use the data to help check benefit entitlement, help identify incorrect payments and support any enquiries into those payments, if needed. DWP cannot ask for information that breaks data protection laws."
