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DWP Confirms 2026 Rollout of Bank Monitoring and Fraud Powers

New documents outline how test-and-learn pilots will guide the phased 2026 rollout under strict oversight with tight data sharing limits.

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Overview

  • The DWP will begin a phased ‘test and learn’ implementation of its new fraud measures in 2026, starting with pilot schemes to refine eligibility checks.
  • Under the Eligibility Verification measure, banks and other third parties will share limited indicator data to flag potentially fraudulent benefit claims without disclosing transaction details.
  • Factsheets confirm the department’s authority to seize overpayments directly from offenders’ bank accounts and impose driving disqualifications of up to two years on persistent fraudsters.
  • Almost every DWP benefit—excluding only the State Pension—will be subject to the new monitoring and verification powers, including Universal Credit, Pension Credit and Employment and Support Allowance.
  • Eleven detailed factsheets set out independent oversight, reporting requirements, staff training and penalties for data oversharing to ensure the new powers are used proportionately.