News Beat
DWP powers to check some pensioners’ bank accounts to begin
This is part of new rules, which form part of the Public Authorities (Fraud, Error and Recovery) Bill, which last year the DWP said would see them issuing ‘Eligibility Verification Notices’ from 2026.
This is limited to Pension Credit claimants, alongside some other means-tested benefits, and worth noting that the State Pension is explicitly excluded from the power.
The UK government is now snooping on pensioners’ bank accounts.
Under a new fraud bill, banks are being forced to share customer data with the government all in the name of “tackling benefit fraud.”
But the plan goes far beyond that. The DWP will use AI to scan spending… pic.twitter.com/L8uNoEKcet
— Neil McCoy-Ward (@NeilMcCoyWard) October 8, 2025
According to information issued by the DWP, it will have 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.
“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.”
Can the DWP look at my bank transactions and see what I buy?
No, the rules are clear on this. Banks can only share limited information in response to an Eligibility Verification Notice, for example:
- specified details about the account(s) (such as sort code and account number)
- specified details about the account holder(s) (such as their name(s) and date(s) of birth)
- specified details about how the account(s) meets the eligibility indicators.
They could receive a penalty for oversharing information, such as transaction information. The DWP also adds: “Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence.”
Which DWP benefits and pensions do these rules apply to?
“This power can only be used to obtain information on accounts that receive a specified DWP benefit, and any accounts linked to that benefit receiving account if they match the eligibility indicators set by DWP,” says the DWP’s Eligibility Verification powers in the Public Authorities (Fraud, Error and Recovery) Bill information.
The DWP adds: “The measure will initially focus on benefits where incorrect payments are currently highest, these are:
- Universal Credit
- Pension Credit
- Employment and Support Allowance
“Other benefits could be added with the approval of Parliament in the future through affirmative regulations.”
State Pension is explicitly excluded from this power and cannot be added by regulations.
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What happens if the DWP decides I have too much money in my account?
“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.”
They are keen to stress that this will not be done by AI tools.
It will also be a gradual process: “DWP will be gradually rolling out the use of the Eligibility Verification Measure in a test and learn environment to allow for sufficient time for business to establish best processes.”
When fully rolled out the Department estimates that DWP will identify between 50,000 and 100,000 overpayments as a result of the measure each year.
