The Department for Work and Pensions has confirmed that information obtained through new bank account eligibility checks will not automatically lead to benefit suspensions. Trained staff must review all relevant information before any action is taken.
The reassurance comes in the UK Government’s response to a public consultation on new Codes of Practice linked to the Public Authorities (Fraud, Error and Recovery) Act 2025. This legislation allows the DWP to issue Eligibility Verification Notices (EVNs) requiring banks and financial institutions to check information related to certain benefit eligibility rules.
The DWP stated the new powers aim to identify incorrect benefit payments caused by fraud or error, such as exceeding savings limits or spending too much time abroad.
Consultation Concerns Addressed
During the consultation, respondents raised fears that benefit payments could be unfairly stopped based solely on bank account data. In its response, the DWP said information received through an EVN “will not trigger any automatic suspension” and all decisions will be made by trained staff who review all relevant information before action is taken.
The Department also said claimants would be contacted and given the opportunity to respond if further clarification about their circumstances was needed. According to the consultation response, benefit payments would not be suspended until concerns had been considered under existing DWP processes, including hardship considerations.
Eligibility Indicators Not Published
The DWP confirmed it will not publish the exact “eligibility indicators” used to identify accounts for checks, arguing that doing so could allow people committing fraud to avoid detection. However, the indicators will be linked to existing benefit eligibility rules, such as capital limits or time spent overseas.
Gradual Rollout and Oversight
The checks will be introduced gradually through a “Test and Learn” period before wider rollout. The DWP said all safeguards used during full implementation would also apply during the early rollout phase. An independent reviewer will oversee the use of the new powers and report findings to Parliament annually.
The UK Government received 61 responses from members of the public, charities, representative organisations and businesses during the 12-week consultation period.
What Banks Can Check
Under the proposals, the DWP can issue an EVN requiring a financial institution to search its own records for accounts matching certain criteria. Banks will not receive personal information from DWP and cannot search for named claimants. Instead, banks would identify accounts already receiving relevant benefits that meet specific conditions set out in the notice.
The code gives the example of Universal Credit savings rules, where accounts with more than £16,000 could be flagged because this is the upper capital limit for the benefit. It also states the DWP may ask banks to identify people with savings between £6,000 and £16,000 because Universal Credit payments reduce once capital rises above the lower threshold. Information could also be shared where there are indications someone may have spent more time overseas than benefit rules allow.
What Banks Cannot Share
The code repeatedly stresses strict limits apply to the information banks can provide. The DWP said financial institutions are prohibited by law from sharing: transaction histories, spending information, financial statements, and special category data such as political opinions, religion or ethnicity. The guidance also states no decisions about benefit entitlement will be made automatically using bank data alone. Any information shared would only indicate “further enquiry may be necessary” and would not mean a person is assumed to have committed fraud or wrongdoing. The document states: “No decisions about benefit entitlement will be made automatically on this information alone.”
Joint Accounts and Linked Accounts
The code also explains how linked and joint accounts may be considered. Linked accounts are any additional accounts held by the same person who receives a relevant benefit payment. The DWP said joint account information could also be shared in some circumstances because banks would not know which account holder is the benefit claimant. Information not relevant to benefit eligibility would not be shared further and would later be destroyed in line with data protection rules. The guidance also includes sections covering appointees and landlords who may receive benefit-related payments into personal accounts on behalf of someone else.
Why DWP Is Introducing the Checks
The DWP recently released its latest fraud and error statistics which showed £9.9 billion was overpaid across the benefits system during the financial year ending 2026. Universal Credit remained the biggest source of overpayments, with fraud linked to earnings, savings and living arrangements among the largest causes identified. The DWP said the new verification process is intended to help identify incorrect payments earlier and prevent claimants building up large debts through overpayments.
