The Department for Work and Pensions (DWP) has confirmed it has used its new powers for the first time after new laws were implemented earlier this year. The DWP issued its first Eligibility Verification Notice, which requires banks to share information to check someone’s benefit entitlement.
The Eligibility Verification Measure (EVM) will ask banks to help identify claimants who may have undeclared savings or those who remain abroad longer than benefit rules allow.
Detecting Fraud and Protecting Taxpayers
The measures are set to help detect fraud, reduce incorrect payments and protect taxpayers’ money - expected to save taxpayers £1.2 billion by 2030/31. Introduced as part of the Public Authorities (Fraud, Error and Recovery) Act 2025, the new measures are expected to contribute to the Government’s wider drive to save the taxpayer £14.6 billion over the next five years.
It will also help identify incorrect payments sooner, ensuring people receive the support they are entitled to while reducing the risk of overpayments building up and claimants falling into avoidable debt.
Minister's Warning to Fraudsters
DWP Minister for Innovation, Fraud and Debt Lilian Greenwood said: “Benefit fraudsters should be looking over their shoulder. These new powers will help us crack down on those who deliberately abuse the system, while ensuring people receive the right support at the right time.
"We are not interested in where people do their weekly shop or how much they're spending on new clothes. Banks will simply be asked to identify if somebody may no longer meet the rules for the benefits they receive, allowing us to investigate further where necessary.
"With £1.2 billion in savings expected by 2030/31, this is a major step forward in tackling fraud and error, protecting public money and ensuring support goes to those who genuinely need it."
Additional Powers Under the Act
The move marks a significant step forward in the Government's drive to create a fairer welfare system by cracking down on fraud, reducing costly error and ensuring support is targeted at those who genuinely need it.
Other measures in the PAFER Act mean that the DWP is now allowed to seize cash directly from people’s bank accounts without need for a court order relating to debt. In the most serious cases, when welfare debt is more than £1,000 and there is no working need for a car, someone’s driving licence can be revoked via a court order. Any ban is initially suspended as long as repayment terms are kept to.
It comes as a wider package of reforms are set to be unveiled at the Budget on Wednesday, October 28, which will be the first budget under Andy Burnham's government.
