Overview

• Media reports say the largest banks would be required to flag indicators on accounts receiving Pension Credit and would be barred from informing customers when checks occur.
• Around 1.36 million people on Pension Credit could be subject to these checks, while the State Pension itself has been described as outside the scope.
• The Cabinet Office has developed an AI-based tool to analyse the indicators supplied by banks, and the DWP stresses that caseworkers make any decisions affecting payments.
• The legislation includes powers to recover overpaid benefits directly from individuals’ accounts, with ministers citing OBR-linked savings of £1.5bn over five years and £9.6bn by 2030.
• Civil-liberties groups and UK Finance warn of surveillance risks and operational challenges for lenders, as pilots are slated to begin on a test-and-learn basis from April 2026 if the bill passes.