The Department for Work and Pensions (DWP) is introducing new powers to request information from bank accounts connected to benefit payments, under the Eligibility Verification powers in the Public Authorities (Fraud, Error and Recovery) Bill. (GOV.UK)

Start date: These powers are expected to begin being used from April 2026. (ASAMB) Before that, the government and banks are preparing systems, codes of practice, and legal frameworks. (GOV.UK)

Over a transition period, not all checks will be active everywhere immediately — the DWP is likely to roll out the process gradually (a “test-and-learn” approach). (GOV.UK)

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Who Will Be Targeted?

The bank-account checks are not universal; they will apply only to certain benefits and accounts. Here’s who is in scope — and who is excluded.

In Scope

• Means-tested benefits: These include Universal Credit, Pension Credit, and Employment and Support Allowance (ESA). (GOV.UK)
• Accounts linked to benefit payments: The checks apply to bank accounts that receive one of the specified DWP benefits, and potentially to accounts that are “linked” to that account. (GOV.UK)
• Eligibility indicators: Banks will be asked to check whether certain indicators of ineligibility are met — for example, whether account holders have savings above the benefit’s capital limits (e.g., over £16,000 for Universal Credit). (GOV.UK)

Excluded / Not Targeted

• State Pension only: If you receive only the State Pension (and no means-tested benefits), your account is explicitly not included under these new checks. (GOV.UK)
• Other benefits not listed: At present, the powers are limited to the benefits specified by law; other benefits may be added later only through further approval by Parliament. (GOV.UK)

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How the Account Checks Will Work

Here’s an outline of how the process is designed to operate under the new legislation:

1. Issuing Eligibility Verification Notices
   The DWP will send “Eligibility Verification Notices” to banks and financial institutions, detailing which accounts to check and what eligibility indicators to match (e.g., savings thresholds). (GOV.UK)
2. Limited Data Requests, Not Full Access
   Banks will not surrender full transaction histories or every detail of an account. They will only share specific, limited information needed for eligibility checks (such as account number, balance, or whether the account meets a given indicator). (GOV.UK)
3. Flagging & Review
   If an account is flagged as meeting an indicator of potential ineligibility, that flag goes back to DWP. But it does not mean immediate benefit cuts or sanctions — a human review is required before any action is taken. (GOV.UK)
4. Safeguards, Oversight & Privacy Limits
   • There will be a Code of Practice that governs how banks and DWP use the power. (GOV.UK)
   • Independent oversight will be required, with annual reporting to Parliament. (GOV.UK)
   • The powers cannot be used to request sensitive data like people’s spending history (i.e. what you bought) or special category data (health, religious beliefs, etc.). (GOV.UK)
   • DWP must comply with data protection legislation (UK GDPR, Data Protection Act). (GOV.UK)

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What This Means for Claimants & How to Prepare

If you claim means-tested benefits, these changes could affect you — but following a few steps can help you avoid surprises:

• Keep your financial records updated and accurate: Report changes in income, savings, household composition, or other circumstances promptly.
• Avoid large unexplained deposits: If you receive money (gifts, inheritance, etc.), keep documentation to show why.
• Stay informed of DWP communications: You may be asked to provide information or respond to queries if your account is flagged.
• Know your rights: You’ll have the right to be challenged, to provide evidence, and to appeal decisions if wrong.

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