UK government begins bank checks to detect benefit fraud

The United Kingdom's Department for Work and Pensions (DWP) has commenced using new powers to request that financial institutions flag bank accounts that may not meet welfare eligibility criteria. The first official Eligibility Verification Notice was issued on Monday, October 26, 2026.

The checks specifically target claimants of Universal Credit, Pension Credit, and New Style Employment and Support Allowance (ESA). The primary focus is to identify individuals with savings exceeding permitted limits or those who have spent excessive time abroad in violation of benefit rules. The DWP clarified that these measures do not grant direct access to full transaction records or personal spending habits, and a flagged account does not automatically constitute proof of fraud.

Introduced under the Public Authorities (Fraud, Error and Recovery) Act 2025, the initiative is part of a broader government strategy to save £14.6 billion over five years by addressing fraud, errors, and unpaid debts. The government projects that these specific bank-checking measures will save taxpayers £1.2 billion by the 2030/31 fiscal year. The rollout is beginning with a limited number of banks before being expanded more widely across England, Scotland, and Wales.