Overview

• A House of Lords debate set out that banks cannot tell account holders for up to three months after receiving DWP or PSFA information notices, with disclosure allowed sooner once a pre‑deduction notice is issued.
• Direct Deduction Orders would let officials recover welfare debts in lump sums or instalments after a pre‑deduction notice and at least 28 days for representations, with civil penalties for frustrating orders and possible driving‑licence suspension for persistent nonpayment.
• Implementation is slated to begin on a limited basis from April, initially working with selected banks and focusing eligibility checks on Universal Credit, Pension Credit and Employment and Support Allowance.
• Ministers say transaction histories will not be shared, with banks providing identifiers and eligibility information only, and decisions made by humans, with projected savings of £1.5bn over five years toward £9.6bn by 2030.
• Civil liberties groups led by Big Brother Watch are urging removal or tightening of the EVN and DDO powers, warning of population‑wide surveillance and a risk of wrongful flags for disabled, older and low‑income claimants.