Overview
- The DWP, which confirmed Sunday that the new powers are not yet in use, plans a small trial later this year under a “test and learn” approach.
- Under the law, officials can ask UK banks to search for accounts tied to certain benefits and flag accounts that may be getting payments a person is not entitled to.
- Investigators will be able to take money directly from a person’s bank account to recover unpaid DWP debts, with notice to the person, a chance to challenge, and a request for three months of bank statements to check funds.
- Initial checks will cover Universal Credit, Pension Credit, and Employment and Support Allowance, with scope to extend to other benefits later.
- Legislation passed in December 2025 also lets fraud investigators compel information from any third party linked to a person under suspicion, expanding a previously narrow list of sources.