DWP Launches Bank Checks to Combat Benefit Fraud

The Department for Work and Pensions has launched new bank checks to combat fraud and error among claimants of Universal Credit, Pension Credit, and Employment and Support Allowance. Using Eligibility Verification Notices under the Public Authorities (Fraud, Error and Recovery) Act 2025, the agency requires financial institutions to flag accounts that may violate eligibility rules, specifically regarding undeclared savings or excessive time spent abroad.

Minister for Innovation, Fraud and Debt Lilian Greenwood stated that these powers will help the government crack down on those who deliberately abuse the system. The DWP clarified that officials do not have direct access to individual bank transactions or spending habits, and that flags do not automatically prove fraud or result in the immediate cessation of benefits.

The measure is currently in a test-and-learn phase. The government estimates that fraud related to savings and overseas residency cost taxpayers £1.5 billion in 2025-26 and expects this specific initiative to save £1.2 billion by 2030-31. This effort is part of a broader strategy that includes the deployment of 2,000 anti-fraud specialists to save £14.6 billion over five years.