Overview
- Britain’s Department for Work and Pensions released a Code of Practice that explains how Eligibility Verification Notices will ask banks to search their own records for risk indicators linked to Universal Credit, Pension Credit and ESA.
- Banks are barred from sharing transaction histories, spending data, financial statements or special-category data, and may only return a sort code, account number, account-holder name, date of birth and a note showing how an account met an indicator.
- The code cites examples such as savings above £16,000, balances between £6,000 and £16,000, or consistent account use outside the UK, and says any match only prompts further checks rather than an automatic decision.
- A limited ‘Test and Learn’ rollout will start with a small set of financial institutions, with annual independent reviews, and banks can seek an internal review or appeal notices to the First-tier Tribunal.
- Current, savings and investment accounts are in scope, some children’s accounts may be checked under benefit rules, and the DWP says the approach targets fraud and error that it estimates led to about £9.5 billion of overpayments in 2024/25.