The Department for Work and Pensions (DWP) has gained new powers to request information directly from banks and other financial institutions to check for fraud. The new Eligibility Verification Measure (EVM) powers, announced on Tuesday, require banks to provide information when asked by the DWP to ‘identify incorrect benefit payments’.
Who is affected and what data is shared
Those receiving Universal Credit, Pension Credit or the New Style Employment and Support Allowance will be affected by the changes. The DWP will be able to find out various pieces of information about you without needing your permission, including the names of account holders, account numbers, how much money is in the accounts, and the date of any transactions if they took place in another country.
The DWP stressed that it ‘cannot log into your online banking or see your account in real time’. It also set out that it cannot see ‘full statements or transactions’, will not be able to see how you spend your money, and will not be able to locate specific transaction locations or obtain ‘sensitive personal information about your background, such as political opinions or religious beliefs’.
What happens if your circumstances changed
The DWP urged anyone whose circumstances have changed, and therefore may no longer be eligible to receive the benefits they are currently receiving, or receive them at the same level, to get in touch to report a change of circumstances as ‘soon as possible’.
The DWP adds: “If you give wrong or incomplete information, or do not report a change in your circumstances, you may: need to pay back any money you are overpaid if you are asked to; be prosecuted; need to pay a fine.”
Potential impact on benefit payments
With the information shared by your bank, the DWP says it can then contact you to ask follow-up questions which could result in your benefits being delayed or stopped entirely. It said: “If information shared by your bank suggests you may be getting an incorrect benefit payment, DWP will review your claim. The review might find that: you’re not eligible for the benefit you’re claiming; the amount you’re receiving is incorrect. DWP may ask you to answer questions about your eligibility or ask you to provide further information to support your benefit claim.
“DWP will contact you through your online journal if you have an online account set up. If you do not have an online account, DWP may contact you by phone, letter or text message. You should respond as soon as possible to avoid your benefit payments being delayed or stopped.”
An independent reviewer will check that the DWP, banks and other financial institutions have followed the law, among other things. Their reports will be presented to Parliament.
