Overview
- Banks and other financial institutions will search their own records against DWP-set indicators and may share limited data such as account identifiers and holder details, not transaction histories.
- Checks will start this year for Universal Credit, Pension Credit and Employment and Support Allowance, with State Pension excluded and linked accounts only in scope if they meet the indicators.
- The DWP says a human will make any decision affecting awards, the rollout will be gradual in a test-and-learn approach, and full implementation is expected to identify 50,000 to 100,000 overpayments annually.
- Other benefits could be added in future through affirmative parliamentary regulations, though the department says there are no current plans to extend the measure.
- The wider legislation adds recovery and investigatory tools including direct deduction orders from bank accounts with advance notice, property searches and broader information notices, with projected savings of £2.1 billion over five years.