The Department for Work and Pensions (DWP) will begin accessing bank accounts of certain benefit claimants after February 27, 2026, under new rules already passed into law. The measures, part of the Public Authorities (Fraud, Error and Recovery) Act, aim to crack down on benefit fraud and errors costing taxpayers £9.5 billion annually.
Banks and building societies will be required to provide information on accounts held by claimants, including whether a Universal Credit claimant has over £16,000 in savings or if a Pension Credit claimant spends more than four weeks abroad. All accounts held by a claimant will be screened, not just the one receiving benefits.
If irregularities are found, the DWP can reduce benefits, demand repayment, request bank statements, or directly take money from accounts. Claimants will receive a letter and have one month to object. Banks may charge an admin fee for processing repayments.
For persistent debts over £1,000, the DWP can apply to court to suspend a claimant's driving licence. Each flagged issue will be reviewed by a DWP officer, with an independent watchdog overseeing the process. Claimants retain the right to challenge decisions.
The new powers will be deployed after a public consultation on the DWP's Code of Practice ends on February 27, 2026.
