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DWP Details Rollout of Limited Bank Data Checks for Benefit Eligibility

Banks will supply limited indicators to verify entitlement, with privacy safeguards limiting departmental access.

Overview

  • The Eligibility Verification Measure begins this year on a staged basis, focusing on Universal Credit, Pension Credit and Employment and Support Allowance.
  • DWP says it will not access claimants' bank accounts or share personal data, with banks screening their own records against DWP-set eligibility indicators.
  • Officials report no current plans to extend the checks to other benefits, though the legislation permits future expansion subject to Parliament.
  • A new direct deduction order will allow debt recovery directly from bank accounts with advance notice, moving beyond recovery via benefit deductions or PAYE.
  • Expanded enforcement powers include broader information notices to third parties and authority for property searches and confiscation, with projected savings of £2.1 billion over five years.