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DWP Set to Gain Bank Data-Check Powers as Benefits Bill Nears Royal Assent

Ministers say banks will share only limited account information to verify eligibility rather than giving officials access to customers' accounts.

Overview

  • The eligibility verification measure would initially cover Universal Credit, Employment and Support Allowance, and Pension Credit.
  • Officials would request specified data from financial institutions to help identify potential incorrect payments.
  • The DWP says the checks aim to catch both inadvertent and deliberate errors earlier to limit claimants’ debts.
  • A separate power would permit direct deductions from bank accounts only after someone has left the benefit system and after advance notice with a right to dispute.
  • The department says shared information does not imply wrongdoing or affect access to banking services, and specialist support is available for vulnerable people.