The DWP’s planned bank-account eligibility checks have moved significantly forward in 2026. The Public Authorities (Fraud, Error and Recovery) Act 2025 received Royal Assent on 3 December 2025, giving the Department for Work and Pensions new powers to require banks and other financial institutions to provide limited information through Eligibility Verification Notices.
However, these powers do not give the DWP unrestricted access to people’s bank accounts or allow routine checks across everyone in the UK. The Eligibility Verification Measure currently covers Universal Credit, Pension Credit and Employment and Support Allowance, with banks checking relevant accounts against eligibility indicators specified by the DWP.
A final Code of Practice was published in May 2026, establishing safeguards around how the system will operate. The measure is being introduced through a controlled Test and Learn approach before wider rollout.
What Is the Eligibility Verification Measure in 2026?
The Eligibility Verification Measure is now backed by legislation rather than merely being a proposal. It forms part of the Public Authorities (Fraud, Error and Recovery) Act 2025, which received Royal Assent on 3 December 2025.
It allows the DWP to issue Eligibility Verification Notices requiring banks and other financial institutions to check relevant accounts against specified eligibility indicators.
The purpose is to help identify cases where someone may be receiving an incorrect amount of benefit because circumstances such as capital or other eligibility conditions may not match DWP records.
The latest DWP figures also provide a clearer picture of the scale of the problem. For the financial year ending 2026, an estimated £9.9 billion, or 3.2% of benefit expenditure, was overpaid because of fraud and error. The net loss after recoveries was estimated at £8.6 billion.
The measure is therefore intended to identify incorrect payments earlier, including both deliberate fraud and genuine errors, before larger overpayments and debts accumulate.
How Will DWP Bank Account Checks Work?
The DWP will not routinely log into or directly inspect claimants’ bank accounts. Instead, authorised DWP officials can issue an Eligibility Verification Notice to a bank or financial institution.
The financial institution will check relevant accounts against eligibility indicators contained in the notice and return limited information when the required conditions are met.
As of 2026, only three benefits are currently within the measure:
- Universal Credit
- Pension Credit
- Employment and Support Allowance
Other benefits are not currently included. Expanding the list would require regulations and approval by both Houses of Parliament.
The precise eligibility indicators will not be publicly disclosed. However, the government says they must relate to the eligibility rules of the relevant benefit. For Universal Credit, for example, capital rules are one area that may be relevant to determining entitlement.
What Bank Account Information Can the DWP Receive?
The Eligibility Verification Measure does not give the DWP unrestricted access to bank statements or everyday spending records.
An Eligibility Verification Notice can require specified information including account details, information about account holders and details showing how an account meets a specified eligibility indicator.
Importantly, financial institutions are legally prohibited from providing transaction information under an Eligibility Verification Notice. This means the measure cannot be used to obtain information identifying individual purchases, transaction amounts or the businesses or people involved in particular transactions.
The legislation also restricts special-category personal data, and banks can face penalties if they provide prohibited information.
Information received through the measure is intended to identify cases requiring further examination. A flag does not by itself establish fraud, error or benefit ineligibility. DWP must consider relevant information before deciding whether further action is necessary.
Will People Who Are Not Claiming Benefits Have Their Accounts Checked?
The Eligibility Verification Measure is not a general system for checking the bank accounts of people who do not receive benefits. The legislation focuses on accounts into which a specified benefit is paid and linked accounts held by the same account holder.
This means a person’s other accounts at the same financial institution may potentially fall within the process where they meet the statutory definition of a linked account and the Eligibility Verification Notice criteria.
There are limited situations where information about someone who is not the claimant could initially be returned. Examples include joint account holders, benefit appointees or certain landlords receiving benefit payments directly.
The 2026 Code of Practice states that where DWP establishes that information is not relevant to the claimant’s benefit eligibility, it must not be passed to operational teams and should be destroyed when no longer required.
This is different from the DWP’s separate debt-recovery powers, which can apply to someone who is no longer receiving benefits but still owes a recoverable DWP debt.
When Will These Bank Account Checks Begin?
The policy has progressed considerably since it was first proposed. The Public Authorities (Fraud, Error and Recovery) Act became law in December 2025, and the final Code of Practice on Eligibility Verification Notices was published on 14 May 2026.
The current implementation model is a Test and Learn approach. DWP intends initially to exercise the power with a small number of financial institutions so that its systems, eligibility indicators, data-transfer arrangements and safeguards can be evaluated before the measure expands.
After Test and Learn, additional financial institutions are expected to be brought into the system through a controlled rollout.
It is better to remove the claim that nationwide implementation will definitely be completed between 2029 and 2031. Current official guidance describes a gradual controlled rollout rather than giving that precise completion window.
The June 2026 OBR Welfare Trends Report continues to describe the measure as being implemented from 2026 and forecasts that it could reduce fraud and error by around £0.3 billion in 2030–31.
What Safeguards Are in Place to Protect Individuals?
One of the most important features of the policy is the inclusion of strong legal safeguards. These have been built into the legislation to ensure that the DWP’s powers remain proportionate, accountable, and limited.
The safeguards include:
- Independent oversight by regulatory bodies such as the Information Commissioner’s Office
- Clear restrictions on the types of data that can be shared
- No automated benefit stoppages based solely on flagged data
- Human review and communication with the claimant before any action is taken
These safeguards are intended to protect the rights of vulnerable individuals and to ensure that the policy does not disproportionately impact people with complex financial lives.
What Is the Government’s Justification for the Policy?
The government argues that this measure is necessary to tackle the unsustainable levels of fraud and error in the welfare system. By gaining better visibility into eligibility conditions, the DWP can reduce waste, prevent overpayments, and ultimately protect public funds.
Supporters of the policy point out that allowing benefit claims to go unchecked can result in long-term debts for claimants and financial loss for taxpayers. Early detection allows the DWP to correct errors before they accumulate, helping both the state and individuals avoid unnecessary complications.
The policy is also intended to increase public confidence in the welfare system, ensuring that it remains fair, targeted, and accountable.
Is This a Move Toward Financial Surveillance?
While the idea of financial monitoring may sound invasive, the government has stressed that the Eligibility Verification Measure is not a surveillance tool. The focus is on identifying eligibility concerns, not on tracking spending habits or lifestyle choices.
The system will not:
- Monitor daily spending
- Track where people shop
- Review direct debits or standing orders
Instead, it will look for specific signs that someone may no longer meet benefit rules. Any further investigation will follow a formal process, including giving claimants a chance to provide explanations or supporting evidence.
How Should Claimants Prepare for These Changes?
For most people receiving benefits, no immediate action is required. However, claimants are encouraged to keep their information up to date with the DWP to avoid potential misunderstandings in the future.
Claimants should:
- Report increases in savings or capital
- Notify the DWP of extended travel abroad
- Disclose changes in income or living arrangements
Maintaining transparency ensures that benefit awards remain accurate and reduces the risk of unexpected interruptions.
Summary of the DWP’s Eligibility Verification Plan
| Aspect | Details |
| Policy Name | Eligibility Verification Measure |
| Legislation | Public Authorities (Fraud, Error and Recovery) Bill |
| Start Date | From 2026 |
| Target Group | Benefit recipients (e.g., Universal Credit, Pension Credit) |
| Data Shared | Limited, high-level eligibility indicators |
| Access to Full Accounts | No direct DWP access to personal transactions |
| Oversight | ICO, parliamentary scrutiny, human-led review process |
Conclusion
DWP bank account checks are now backed by the Public Authorities (Fraud, Error and Recovery) Act 2025. They currently apply to Universal Credit, Pension Credit and Employment and Support Allowance—not the general public.
Banks will share limited information based on DWP eligibility indicators, but not transaction details. A flag does not automatically prove fraud or stop benefits.
Following the Code of Practice published in May 2026, the checks will be introduced gradually through a Test and Learn programme. Claimants should continue reporting relevant changes under their benefit’s rules.
FAQs About DWP Bank Account Checks
Can the DWP check everyone’s bank account in 2026?
No. The Eligibility Verification Measure is not a general population bank-checking power. It concerns accounts receiving specified benefits and qualifying linked accounts.
Which benefits are covered by DWP bank account checks?
The current legislation specifies Universal Credit, Pension Credit and Employment and Support Allowance. Other benefits could only be added through further regulations.
Can the DWP see what I buy with my bank account?
No. Financial institutions are prohibited from supplying transaction information identifying purchases, individual transaction amounts or transaction counterparties through an Eligibility Verification Notice.
Can the DWP check my savings?
Banks may be required to identify whether relevant accounts meet eligibility indicators connected with benefit rules, including applicable capital requirements. This does not mean DWP receives unrestricted access to your account.
Will a bank flag automatically stop my benefits?
No. Information returned under an Eligibility Verification Notice does not by itself establish fraud or incorrect entitlement. DWP must consider other relevant information before making decisions affecting a claim.
Can someone who does not claim benefits be caught by the system?
They are not subject to routine EVM checks simply because they do not claim benefits. Limited information may arise through joint accounts, appointee arrangements or accounts receiving payments on behalf of a claimant, with rules governing irrelevant data.
Have the new DWP bank account powers already become law?
Yes. The Public Authorities (Fraud, Error and Recovery) Act received Royal Assent on 3 December 2025, and the final Eligibility Verification Notice Code of Practice was published on 14 May 2026. The measure is being introduced through a controlled implementation process.
