The Department for Work and Pensions (DWP) has explained exactly what details banks will share about benefit claimants under new rules. Banks must share certain information with the DWP upon receiving an Eligibility Verification Notice.
What is the Eligibility Verification Notice?
The Eligibility Verification Notice (EVM) is a way for the DWP to identify incorrect benefit payments and check the benefit entitlement of recipients. It requires banks and other financial institutions to provide information, when requested by the DWP, to identify incorrect benefit payments.
The measure can apply if you claim certain benefits, such as Universal Credit, Pension Credit, and New Style Employment and Support Allowance.
Purpose of the new rules
Under the new legislation, the DWP's capacity has been bolstered to tackle social security fraud and errors by providing the department with enhanced authority to investigate, prevent, and reclaim funds owed to taxpayers. The measures are designed to identify potential overpayments before they occur, tackle fraud and errors whilst ensuring accurate payments are made.
DWP will share certain information with banks and other financial institutions, known as 'eligibility indicators', as part of the new measures. The indicators are based on benefit eligibility rules and help institutions identify accounts that may need to be checked by DWP. This helps ensure people receive the benefits they are entitled to.
Details banks will share
Banks will check the information they hold on accounts receiving certain DWP benefit payments and tell DWP when a personal account into which a relevant benefit is paid meets an eligibility indicator. This includes linked accounts. The account may belong to either a claimant or a non-claimant.
Where an eligibility indicator is met, financial institutions will only share limited information with DWP to help identify incorrect benefit payments and check benefit entitlement. They may share:
- the names of all account holders
- details of any accounts you hold, including linked accounts and joint accounts
- account numbers
- sort codes, if the accounts have these
- information about how much money is in the relevant accounts
- the date of transactions that took place in another country
The DWP also warns that you must keep your information up to date so that you get the correct amount of benefit. Any delay may mean you receive too much money and may have to make a repayment, it adds.
More information can be found on the Gov.uk website.
