The Department for Work and Pensions (DWP) has issued its first Eligibility Verification Notice (EVN), a new power to help identify claimants with undeclared savings or extended time spent overseas, which officials say is expected to save taxpayers £1.2billion by 2030/31.
Banks will be asked to flag accounts to the DWP where data suggests certain benefit eligibility rules may no longer be met. The move forms part of the Government's wider plan aimed at saving £14.6billion by tackling fraud, error and debt, alongside broader moves to put work and opportunity at the heart of a sustainable welfare system.
How the new measure works
The Government said the move will 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.
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 £1.2billion 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."
Wider reforms and safeguards
The DWP said a wider package of reforms, set to be unveiled at the Budget, is expected to save the taxpayer a further £1.4billion between 2027 and 2032. This includes the deployment of 2,000 additional anti-fraud specialists into Jobcentres nationwide, as well as tougher checks on Universal Credit claims abroad to tackle fraudsters who fail to report they have left the country to keep payments flowing.
The Budget will be built on fiscal stability, giving breathing space on the cost of living and the cost of doing business, and offering fresh hope for the future, officials added.
The DWP's new powers do not give it access to people's bank accounts, transactions or spending habits, it highlighted. Banks are asked only to check relevant benefit receiving accounts against certain eligibility rules for benefits and flag cases where further enquiries may be required. A flag does not indicate fraud or wrongdoing, and no decision about a person's benefit entitlement can be made on EVM information alone, officials added.
The measure will begin with a carefully managed test-and-learn phase and remain subject to independent oversight throughout before any wider rollout, the DWP said.
