The Department for Work and Pensions (DWP) has confirmed that information gathered through new bank account eligibility checks will not lead to automatic benefit suspensions, with trained staff required to review cases before any action is taken.
The assurance comes in the UK Government's response to a public consultation on Codes of Practice linked to the Public Authorities (Fraud, Error and Recovery) Act 2025. The legislation allows the DWP to issue Eligibility Verification Notices (EVNs) to banks and financial institutions to verify information related to benefit eligibility criteria.
The DWP stated the new powers aim to detect incorrect benefit payments due to fraud or error, such as exceeding savings thresholds or spending too long abroad. However, consultation responses raised concerns that payments could be wrongly suspended based solely on bank data.
In its response, the DWP confirmed that information from an EVN 'will not trigger any automatic suspension', and all decisions will be made by trained personnel who examine all relevant information. Claimants will be contacted and given the chance to respond if further clarification is needed, and payments will not be suspended until concerns are reviewed through existing procedures, including hardship considerations.
The DWP will not disclose the precise 'eligibility indicators' used to identify accounts for scrutiny, as this could help fraudsters evade detection. The checks will be rolled out progressively through a 'Test and Learn' phase before wider implementation, with an independent reviewer monitoring the powers and reporting annually to Parliament.
The consultation received 61 submissions from the public, charities, and businesses over 12 weeks. The DWP emphasised that no benefit entitlement decisions will be made automatically based on banking data alone, and any information disclosed would only suggest further enquiry may be necessary.
