DWP Bank Account Checks Could Reach Pensioners' and Claimants' Linked Accounts Under New Rules?

The Department for Work and Pensions (DWP) issued its first notice on 26 October requiring banks to share limited information about accounts receiving Pension Credit, Universal Credit and new-style Employment and Support Allowance (ESA). The checks may also extend to certain linked and joint accounts.

The Eligibility Verification Measure was introduced by the Public Authorities (Fraud, Error and Recovery) Act 2025. The DWP says the checks are intended to identify incorrect payments and verify benefit entitlement. They cover specified information, rather than giving the department general access to someone's bank account.

Which Benefits Are Covered?

The measure applies only to Universal Credit, Pension Credit and new-style ESA. The State Pension is explicitly excluded, so people who receive only that are not affected.

The checks can reach beyond the named claimant. Where an account receiving benefits is held jointly, information about the account holders and their other accounts may be shared in certain circumstances. Details about non-claimants can also be returned where an account receives benefits on someone else's behalf.

Linked accounts must meet specific criteria. The powers do not give the DWP unrestricted access to the finances of relatives, partners or anyone else associated with a claimant. Being connected to a claimant does not, by itself, mean that someone's financial information can be accessed under the measure.

The measure's scope is therefore limited by both the benefits covered and the criteria for linked accounts. The article does not specify those criteria, so readers cannot tell from the available details exactly which linked accounts may be included.

What Banks Can and Cannot Share

Banks may provide relevant account balances, details of linked and joint accounts, and the dates of transactions made abroad.

They cannot provide full bank statements, transaction histories, details of how someone spends their money, specific transaction locations or sensitive personal information such as political opinions and religious beliefs. The measure does not give the DWP access to full overseas transaction histories.

In other words, the information described is narrower than a record of someone's day-to-day spending. The limits set out for the measure distinguish account information and certain transaction dates from full statements or detailed transaction histories.

Information that is not relevant to a claimant must not be shared further or used by operational teams. It must be securely destroyed when it no longer serves a purpose, in line with the department's Information Management Policy.

A Flag Does Not Prove Wrongdoing

A match does not mean payments will be stopped or reduced. The DWP told Parliament on 26 October that information received through the measure will act only as a prompt for further checks. It will not, by itself, establish wrongdoing or change someone's entitlement. Decisions remain the responsibility of trained departmental staff.

The information is therefore a starting point for further checks, not a decision about a claim. The article does not set out what those checks involve or how a claimant would be told that their information had prompted them.

The government's stated aim is to reduce error as well as fraud. An incorrect payment may arise from a change in circumstances, an administrative mistake or inaccurate information, rather than dishonesty.

How the Checks Will Be Tested and Monitored

The measure is being introduced through a controlled 'test and learn' phase. During this period, the DWP says it will assess data quality, operational effects and customer outcomes before considering a wider rollout to more financial institutions.

Independent oversight will be provided by a reviewer appointed through an open selection process. The reviewer will examine how the DWP and financial institutions use the powers, including whether they comply with the law. Reports will be produced annually and presented to Parliament, providing a formal route for scrutiny as the checks expand.