A new online petition is urging the UK Government to reconsider implementing new Department for Work and Pensions (DWP) measures to ‘monitor’ bank accounts of claimants on means-tested benefits. Under the Eligibility Verification Measure (EVM), banks may be required to examine accounts receiving certain DWP benefits and identify cases where accounts meet specific ‘eligibility indicators’ linked to benefit rules.
What the EVM Entails
The new system forms part of the UK Government’s wider crackdown on fraud and error in the welfare system and will initially apply to people claiming Universal Credit, Pension Credit and Employment and Support Allowance (ESA). However, petition creator Fionnuala Donnelly argues the measures set a concerning precedent by allowing financial information to be scrutinised without evidence of wrongdoing. It’s important to be aware the DWP does not have direct access to any claimants’ bank account or financial information.
The ‘Stop DWP powers to receive Universal Credit claimants bank account information’ petition also raises concerns about privacy and data protection, questioning how personal information will be safeguarded and whether the powers are proportionate. The petition claims bank account information is normally considered private and argues routine checks should not be carried out without clear justification.
Petition Milestones
At 10,000 signatures of support the petition will be entitled to a written response from the UK Government. At 100,000, it would be considered by the Petitions Committee for debate in Parliament.
DWP’s Stated Purpose
The DWP has previously said the new measures are designed to help identify incorrect payments caused by fraud, claimant error or official error, while also preventing people from building up large overpayments that later need to be repaid. According to the new Code of Practice on Eligibility Verification Notices, banks could be asked to flag accounts where savings exceed benefit thresholds. For Universal Credit, this could include accounts holding more than £16,000, which is the upper capital limit for the benefit. The guidance also states the DWP may request information linked to signs a claimant has spent more time abroad than benefit rules normally allow.
Strict Limits on Data Sharing
However, the DWP said there are strict legal limits on what banks can share. The Code states financial institutions are prohibited from sharing transaction information, meaning the DWP cannot see what people are buying, where they shop or individual spending habits. Banks are also banned from sharing “special category data”, including information relating to political opinions, religious beliefs, ethnicity or health information. The guidance states: “DWP is prohibited by law from sharing personal data with financial institutions under this power, and from requesting transaction information and special category data.”
What Banks Cannot Share
The document also makes clear the DWP cannot ask banks to search for named benefit claimants. The code also repeatedly stresses strict limits apply to the information banks can provide. 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. Instead, financial institutions would apply eligibility criteria across their own systems and only return limited information where accounts match the indicators set out in an Eligibility Verification Notice (EVN). The information that may be shared with the DWP includes account details, names and dates of birth linked to accounts, and details showing how an account met the eligibility indicator. Examples could include confirmation savings exceeded a certain amount or evidence an account had been consistently used outside the UK.
No Automatic Decisions
The DWP stressed information returned by banks does not automatically mean somebody has done anything wrong. The Code states: “No decisions about benefit entitlement will be made automatically on this information alone.” DWP must instead review the information alongside other evidence already held on a claim before deciding whether further checks are needed.
Rollout and Fraud Figures
The guidance also confirms there will be a “Test and Learn” rollout phase involving a small number of financial institutions before wider expansion. During this period, the DWP said it will assess how well the system works, how accurate the data is and whether safeguards are operating effectively before broader implementation. The DWP estimates benefit fraud and error resulted in £9.6billion of overpayments during the 2025/26 financial year.
