DWP to gain powers to access bank data of state pensioner benefit claimants

Joe Sledge
Tue, 21 Apr 2026 08:26:44 +0000

The Department for Work and Pensions (DWP) is set to gain sweeping new powers to scrutinise the bank accounts of benefit claimants under proposed legislation.

The Eligibility Verification Bill forms a central part of the Government’s efforts to reduce fraud and errors across the welfare system.

Under the plans, those receiving Pension Credit, Universal Credit and Employment and Support Allowance could have their financial information examined where potential irregularities are identified.

The move is intended to address rising welfare costs, with ministers seeking stronger mechanisms to verify eligibility.

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Civil liberties groups and privacy campaigners have raised concerns about the extent of the proposed powers.

The DWP has said the measures are necessary as benefit spending continues to increase.

Banks and financial institutions will be required to check their data against criteria set out by the department through what is known as an Eligibility Verification Notice.

They said: "Banks and other financial institutions will be required to look at the data they hold on accounts in receipt of a specified DWP benefit payment and match these accounts to specific eligibility indicators determined by DWP (and defined within an Eligibility Verification Notice) and highlight where the criteria have been met."

When responding to these notices, financial institutions may provide limited account details, including sort codes and account numbers.

Information relating to account holders, such as names and dates of birth, may also be shared where relevant.

Banks may also supply details explaining how an account meets the eligibility criteria outlined by the department.

The DWP has said that only restricted data will be shared in response to these requests.

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Privacy campaigners have continued to express concern, arguing the proposals could expand the state’s access to individuals’ financial information.

The department has defended the policy, stating the powers are necessary to ensure public money is properly allocated.

The DWP said: "This new measure in this Bill will give DWP the power to require banks and other financial institutions to provide information to help verify a claimant's entitlement to benefits and identify incorrect payments."

Ministers have said the changes are designed to protect the integrity of the welfare system by identifying fraudulent claims and administrative errors.

The DWP has also confirmed that human oversight will remain part of any decision-making process.

The department said: "Where there are further inquiries or investigations, DWP will lead this, as it does now. A human will always be involved in any decision taken afterwards which may affect benefit awards or eligibility, as they are now."

Parliament could approve the addition of further benefits to the scheme at a later stage.

Those receiving only the state pension will not be affected by the new powers.

The state pension is not included within the scope of the proposed eligibility verification measures.