Politics · United Kingdom · 3 hrs ago
UK banks asked to flag benefit claimants who may break eligibility rules
The UK Department for Work and Pensions has issued its first notice under new bank-checking powers to help verify benefit claims.
Banks will be asked to check relevant accounts for claimants receiving Universal Credit, Pension Credit or New Style Employment and Support Allowance.
The checks target undeclared savings and time spent abroad, which can affect whether someone qualifies for benefits.
For example, people with more than £16,000 in savings cannot receive Universal Credit, while those with more than £6,000 should receive reduced payments.
A bank flag is not proof of fraud, and the department cannot decide someone’s entitlement based on this information alone.
The powers do not give the department access to people’s transactions or spending habits.
The scheme is beginning with a managed trial and is expected to save £1.2 billion by 2030/31; the government also plans to announce more anti-fraud measures at the Budget.
The Department for Work and Pensions has issued its first notice requiring banks to share information to help check benefit claims.
Banks will be asked to flag accounts where information suggests a claimant may no longer meet certain eligibility rules.
The measure is intended to identify undeclared savings and claimants who spend longer abroad than benefit rules allow.
The government expects the measure to save taxpayers £1.2 billion by 2030/31.
The powers do not give the department access to customers’ transactions or spending habits, and a flag alone cannot determine benefit entitlement.
- Who
- The Department for Work and Pensions and banks. The checks concern people claiming certain benefits.
- What
- Banks are required to share information and flag cases that may need further checks on benefit eligibility.
- When
- The department issued its first notice on 26 October 2026.
- Where
- The United Kingdom.
- Why
- To identify possible undeclared savings or extended stays abroad, reduce incorrect payments and protect public money.
This story does not have two clearly opposing sides.
It was revealed that banks could be issued an Eligibility Verification Measure to check information about suspected benefit fraud.
The Department for Work and Pensions said it had issued its first Eligibility Verification Notice.
The measure is to begin with a managed test-and-learn phase before wider use.
- Expected savings
- £1.2 billion by 2030/31
- First notice
- Issued by the Department for Work and Pensions
- Information sought
- Possible undeclared savings and extended time abroad
- Access limits
- No access to transactions or spending habits
- Relevant benefits
- Universal Credit, Pension Credit and New Style Employment and Support Allowance
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What people are saying
These new powers will help us crack down on those who deliberately abuse the system, while ensuring people receive the right support at the right time.
We are not interested in where people do their weekly shop or how much they’re spending on new clothes.
Banks will simply be asked to identify if somebody may no longer meet the rules for the benefits they receive, allowing us to investigate further where necessary.