DWP’s New Powers: Access to Bank Account Information for Benefit Eligibility Checks

Published on: October 23, 2025
Updated: October 23, 2025

The UK government’s Department for Work and Pensions (DWP) is set to introduce significant new powers that will enhance the verification of benefit claimants’ eligibility. These changes, currently navigating through Parliament, will allow the DWP to access individuals’ bank account details, chiefly focusing on those receiving Universal Credit, Pension Credit, and Employment and Support Allowance (ESA).

Expanded Eligibility Checks for Benefits

The proposed legislation aims to streamline and improve the verification process for benefit claims. While initially targeting Universal Credit, Pension Credit, and ESA, the scope may eventually expand to include other benefits such as Personal Independence Payments (PIP). Chloe Coleman, CEO of the employment verification company Vouchsafe, acknowledged that with the highest number of applications coming from Universal Credit and ESA, these are logical starting points. She emphasized the potential of this system to combat identity fraud, which has become increasingly prevalent.

Potential Implications for Personal Independence Payments

The PIP benefit, designed to support individuals with long-term health conditions or disabilities, may also fall under this new regulatory framework. Coleman pointed out that the DWP could access existing medical records, removing the need for lengthy medical assessments for claimants. This configuration would facilitate a more efficient process reliant on existing health information, provided that arrangements are established with the NHS.

Automated Data Sharing for Streamlined Access

The proposed changes could enable other forms of financial data to be automatically shared with the DWP to establish benefit eligibility. Coleman mentioned that financial evaluations typically hinge on three factors: income, debt, and savings. Under the new system, these factors may be verified through open banking methods, HMRC data, or credit files, allowing for a more straightforward application process. Claimants could potentially avoid the hassle of gathering personal documentation, leading to a more user-friendly experience.

Legislative Progress and Enforcement Capabilities

Having secured approval from the House of Commons, the bill is now under review by the House of Lords. Among its key provisions, investigators will gain the authority to withdraw funds directly from a person’s bank account if they owe money to the DWP and do not respond to collection requests. Prior to any withdrawal, individuals will receive a notice giving them at least 28 days to contest the decision, and DWP officials will be obligated to request three months’ worth of bank statements to demonstrate that sufficient funds are available to settle any outstanding debt.

Addressing Concerns Over Misuse of Powers

Despite concerns regarding the potential misuse of these newfound powers, Coleman remarked that there is a distinction between misuse and errors. She acknowledged a “slight risk” but suggested that relying on accurate open banking data, as opposed to employer-reported income, could ultimately enhance precision in eligibility assessments. Crucially, the bill stipulates that individuals will receive prior notice before any funds are withdrawn, ensuring transparency in the process.

Training and Oversight for DWP Officials

Coleman emphasized the necessity for thorough training among civil servants tasked with conducting the investigations and executing these enforcement actions. There must be stringent checks in place to minimize the possibility of mistakes occurring due to the complexities of the new system.

Government’s Commitment to Combatting Fraud

In a statement released in January 2025, Liz Kendall, the former Secretary of State for Work and Pensions, underscored the government’s commitment to eliminating fraud. “We are turning off the tap to criminals who cheat the system,” she declared. The new legislation aims to ensure that taxpayers’ money is safeguarded against fraudsters, with measures including penalties such as the potential revocation of driving licenses for more serious offenses. Kendall reassured the public that the government is dedicated to tackling fraud effectively while maintaining transparency and oversight of the powers granted.

Conclusion

As the DWP prepares to implement these new powers, the consequences for benefit claimants—and for society as a whole—are significant. While the measures promise to enhance the accuracy of eligibility assessments and minimize fraud, they also raise important questions about privacy and the potential for misuse. As the debate unfolds, one thing is clear: the DWP is committed to ensuring that support systems remain fair and accessible for those who genuinely need them.

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