The Department for Work and Pensions (DWP) has published new guidance confirming which bank account details can be shared during eligibility checks on people receiving certain benefits. The guidance covers Universal Credit, Pension Credit and New Style Employment and Support Allowance (ESA) claimants across Scotland, England and Wales.
How the checks work
Under the Eligibility Verification Measure (EVM), banks and other financial institutions must provide limited information to the DWP when they receive an Eligibility Verification Notice. The checks are designed to identify potentially incorrect benefit payments and ensure people receive the financial support they are entitled to.
However, the DWP has confirmed that it cannot access someone's online banking or view their account in real time. Financial institutions are also prohibited from sharing full bank statements, details of purchases or information about where someone has spent their money.
Which benefits are covered
The Eligibility Verification Measure applies to three benefits: Universal Credit, Pension Credit and New Style Employment and Support Allowance (ESA). The DWP provides banks and other financial institutions with eligibility indicators based on the rules for receiving these benefits.
Financial institutions then check accounts receiving relevant benefit payments to identify whether any of the indicators are met. These checks can include linked accounts and joint accounts, including those belonging to someone who does not claim benefits.
Where an account meets an eligibility indicator, the bank shares limited information with the DWP so the Department can decide whether further enquiries are necessary. An account being identified does not automatically mean someone has received an incorrect payment.
What information can be shared
The DWP has confirmed that banks and other financial institutions may share the following details when an account meets an eligibility indicator: names of all account holders, details of accounts held including linked and joint accounts, bank account numbers, sort codes where applicable, information about the amount of money held in relevant accounts, and dates of transactions that took place in another country.
The Department uses this information to identify potential discrepancies between someone's financial circumstances and the eligibility rules for their benefit.
Information banks cannot share
The new guidance also confirms that financial institutions cannot disclose certain information through the Eligibility Verification Measure. This includes full bank statements or transaction histories, details of how someone spends their money, specific locations where transactions took place, and sensitive personal information including political opinions or religious beliefs.
Banks and other financial institutions can face fines if they provide information that is prohibited under the measure. The DWP has also confirmed that it cannot log into someone's online banking account or monitor their finances in real time.
What happens if the DWP reviews a claim
If information shared by a bank suggests someone may be receiving an incorrect benefit payment, the DWP will review their claim. The review could find that the claimant is receiving the wrong amount or does not meet the eligibility conditions. The Department may ask the person to answer questions about their circumstances or provide additional evidence to support their claim.
People with an online benefit account may be contacted through their journal. Those without an online account could receive a telephone call, letter or text message. The DWP advises claimants to respond as soon as possible because their benefit payments could be delayed or stopped if they do not provide the requested information. Any decision about someone's entitlement or payments must be made by DWP staff.
Changes that must be reported
The Department has also reminded claimants to keep their personal and financial information up to date to ensure they receive the correct amount of benefit. Changes in circumstances can include changes to money, savings or investments, changes to income, moving to a new address, someone moving into or out of the household including a partner, child or lodger, receiving one-off payments such as gifts, refunds or compensation, and leaving Scotland, England or Wales for any period including holidays.
People who fail to report relevant changes could receive more benefit than they are entitled to and may be required to repay the overpayment. In some circumstances, providing incorrect or incomplete information could result in a fine or prosecution. Claimants can find guidance on reporting a change of circumstances through GOV.UK.
Challenging a DWP decision
People who disagree with a decision about their benefit entitlement can ask for it to be looked at again through a process known as mandatory reconsideration. The DWP may review the evidence and reconsider whether the original decision was correct. Information about requesting mandatory reconsideration is available online.
The Department has also confirmed that an independent reviewer will oversee the operation of the Eligibility Verification Measure, including whether the DWP and financial institutions have complied with the law. The reviewer's reports will be presented to Parliament.
The DWP said information collected through the measure can only be used to check benefit entitlement, identify incorrect payments and support related enquiries. Information that is not directly relevant to a benefit claimant must be destroyed in line with the Department's information management policy.
