Overview

• Peers approved by 200–194 an amendment letting the PSFA initiate investigations and recovery without waiting for a request from the affected public body.
• Under Eligibility Verification Notices, banks would supply only five items — sort code, account number, account holder name, date of birth, and how the account meets benefit eligibility indicators — with penalties for oversharing.
• The bill would enable the DWP to recover funds directly from accounts and obtain bank statements where debts are believed repayable, and courts could suspend driving licences for unpaid welfare debts over £1,000.
• Initial targeting covers Universal Credit, Employment and Support Allowance, and Pension Credit, while the DWP says the State Pension is excluded.
• Campaign groups warn of intrusive, suspicionless monitoring and wrongful flags as officials stress oversight, human decision-making on cases, and projected savings of about £1.5bn over five years with an implementation goal of April 2026 if passed.