Fresh calls to scrap DWP bank account monitoring

The Eligibility Verification Measure (EVM) will require banks to share limited information with the DWP, but a petition has been launched arguing the proposed measures set a ‘concerning precedent’ for Universal Credit and benefit claimants

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A new online petition is calling on the UK Government to rethink proposed Department for Work and Pensions (DWP) plans to ‘monitor’ the bank accounts of those receiving means-tested benefits. Under the Eligibility Verification Measure (EVM), banks could be asked to review accounts in receipt of certain DWP benefits and flag cases where accounts display particular ‘eligibility indicators’ related to benefit criteria.

The proposed system is part of the UK Government’s broader campaign to tackle fraud and error within the welfare system and will initially affect those claiming Universal Credit, Pension Credit and Employment and Support Allowance (ESA).

Petition creator Fionnuala Donnelly says that the measures establish a worrying precedent by permitting financial details to be examined without proof of misconduct. It is crucial to note that the DWP does not have direct access to any claimants’ bank account or financial details.

The ‘Stop DWP powers to receive Universal Credit claimants bank account information’ petition also highlights concerns regarding privacy and data protection, questioning how personal data will be protected and whether the powers are reasonable.

The petition maintains that bank account details are typically regarded as private and contends that routine inspections should not take place without clear justification. Once the petition reaches 10,000 signatures, the UK Government will be obliged to provide a written response. Should it reach 100,000 signatures, the Petitions Committee would consider putting it forward for a full parliamentary debate, reports the Daily Record.

The DWP has previously stated that the new measures are intended to help detect incorrect payments arising from fraud, claimant error or official error, while also preventing claimants from accumulating large overpayments that would subsequently need to be repaid.

Under the new Code of Practice on Eligibility Verification Notices, banks could be required to flag accounts where savings surpass benefit thresholds. For Universal Credit, this could include accounts holding more than £16,000, which is the upper capital limit for the benefit.

The guidance further states that the DWP may request information relating to signs that a claimant has spent more time abroad than benefit rules ordinarily permit. Nevertheless, the DWP has confirmed that strict legal restrictions govern what banks are permitted to share.

The Code states financial institutions are prohibited from sharing transaction information, meaning the DWP cannot see what people are buying, where they shop or individual spending habits.

Banks are also banned from sharing “special category data”, including information relating to political opinions, religious beliefs, ethnicity or health information. The guidance states: “DWP is prohibited by law from sharing personal data with financial institutions under this power, and from requesting transaction information and special category data.”

The document also makes clear the DWP cannot ask banks to search for named benefit claimants. The code also repeatedly stresses strict limits apply to the information banks can provide.

DWP said financial institutions are prohibited by law from sharing transaction histories, spending information, financial statements, or special category data such as political opinions, religion or ethnicity.

Rather than sharing such data directly, financial institutions would apply eligibility criteria across their own systems, returning only restricted information where accounts match the indicators outlined in an Eligibility Verification Notice (EVN).

The information that may be passed on to the DWP includes account details, names and dates of birth linked to accounts, and details showing how an account met the eligibility indicator.

Such examples might include confirmation that savings exceeded a specified threshold, or evidence that an account had been regularly used outside the UK. The DWP emphasised that information returned by banks does not automatically indicate that an individual has acted improperly.

The Code states: “No decisions about benefit entitlement will be made automatically on this information alone.”

The DWP must instead assess the information alongside other evidence already held on a claim before determining whether further investigation is warranted. The guidance also confirms that a “Test and Learn” rollout phase will take place, initially involving a limited number of financial institutions before any wider expansion.

During this period, the DWP stated it will evaluate the effectiveness of the system, the accuracy of the data provided, and whether the safeguards in place are functioning as intended prior to a broader rollout.

The DWP estimates benefit fraud and error resulted in £9.6 billion of overpayments during the 2025/26 financial year.