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DWP Sets Out New Fraud Powers: Bank Checks, Family Information Notices and Direct Deductions

Banks, not officials, will run verification checks under oversight for an initial rollout targeting Universal Credit, ESA, Pension Credit.

Overview

  • The department says banks will respond to Eligibility Verification Notices rather than grant investigators unfettered account access.
  • Investigators will be able to issue information notices to third parties, including relatives, where evidence links them to a case.
  • Officials can withdraw owed sums directly from accounts in cases of non‑repayment, after reviewing at least three months of statements.
  • The measures focus first on Universal Credit, Employment and Support Allowance, and Pension Credit, with potential expansion to other benefits.
  • An independent overseer will monitor use of the powers as industry figures call for robust safeguards and civil‑liberties groups warn of privacy risks and possible wrongful flags.