Millions of people receiving benefits in the UK could be affected by new measures designed to help the Department for Work and Pensions (DWP) identify incorrect payments and potential benefit fraud. Under the Eligibility Verification Measure (EVM), banks and other financial institutions can be required to check specific account information against indicators linked to benefit eligibility.
The measure covers people receiving Universal Credit, Pension Credit and New Style Employment and Support Allowance. It allows participating financial institutions to share certain information with the DWP when an account receiving a relevant benefit matches an eligibility indicator.
The policy is intended to help the department identify cases that may need further examination. However, a match does not automatically establish that someone has committed fraud or received benefits incorrectly. The DWP may need to review the circumstances before deciding whether any action is necessary.
For claimants, the distinction is important. The new measure changes how potential eligibility issues can be identified, but it does not mean that every person receiving benefits will automatically have their full bank statements examined.
The information shared is also subject to limits. Understanding what banks can disclose, which benefits are covered and what happens if a claim is questioned can help people understand how the measure works.
Checks
The Eligibility Verification Measure gives financial institutions a role in identifying accounts that may require further checks under benefit eligibility rules.
According to the DWP’s explanation quoted in the supplied report, the department shares certain information with banks and other financial institutions. These details, described as “eligibility indicators”, help institutions identify accounts that may need to be checked.
If an account receiving a relevant benefit matches one of those indicators, the financial institution can notify the DWP. The department can then consider whether the information raises questions about the claimant’s entitlement.
The process is designed to help identify potential discrepancies more efficiently. However, an indicator is not the same as proof of wrongdoing. There may be legitimate reasons why an account matches a particular indicator, and individual circumstances still matter.
The policy also covers certain linked accounts, which may belong to a claimant or another person. This means the checks are not necessarily limited to a single account held solely in the claimant’s name.
Benefits
The measure applies to three benefit categories identified in the supplied report.
| Benefit | What claimants should know |
|---|---|
| Universal Credit | Provides financial support to eligible people on low incomes, including those who are working or unemployed |
| Pension Credit | Provides additional financial support to eligible people who have reached State Pension age |
| New Style Employment and Support Allowance | Supports eligible people whose health condition or disability affects their ability to work |
The eligibility conditions differ between these programmes. Universal Credit and Pension Credit, for example, have rules relating to income and capital, while New Style Employment and Support Allowance is primarily linked to National Insurance contributions and the claimant’s circumstances.
The bank-checking measure does not, by itself, change the core eligibility rules for these benefits. Instead, it creates an additional way for the DWP to identify circumstances that may require investigation.
Claimants should therefore avoid assuming that having savings, holding a joint account or receiving money from another person automatically means they have broken benefit rules. The relevance of financial information depends on the particular benefit, its conditions and the claimant’s individual situation.
Information
The financial information that may be shared with the DWP includes specific account details rather than unrestricted access to all banking records.
According to the supplied report, the information can include:
- Names of account holders.
- Details of additional or linked accounts, including joint accounts.
- Account numbers and sort codes.
- Account balances.
- Dates of transactions.
The report also states that banks cannot disclose complete bank statements, details of individual spending, precise transaction locations or personal background information such as religion under this measure.
These distinctions are important because the policy concerns targeted eligibility checks rather than a general disclosure of every aspect of a person’s financial life.
The exact information involved will depend on the applicable rules and the notice issued to the financial institution. Claimants who have questions about how their information is handled should consult the relevant official guidance and privacy information.
For broader information about benefit rules and government support, the official GOV.UK benefits section provides links to individual programmes and their eligibility requirements.
Reviews
If information supplied by a bank suggests that a claimant may be receiving an incorrect benefit payment, the DWP can review the claim.
That does not necessarily mean payments will immediately stop or that the claimant will be found to have committed fraud. The department must consider the relevant circumstances and determine whether the information affects entitlement.
For example, a discrepancy involving an account balance may require clarification about who owns the money, whether an account is jointly held and which benefit rules apply. The significance of savings or other funds depends on the particular benefit and the circumstances involved.
Claimants should respond promptly to official requests for information and provide accurate details. Keeping personal circumstances up to date can help prevent avoidable payment errors, including situations where someone receives more than they are entitled to and later has to repay the difference.
People who are concerned about a decision can read the DWP’s official guidance on challenging a benefit decision. In many cases, the first formal step is to request a mandatory reconsideration, which asks the department to review its decision.
Time limits and procedures depend on the type of decision. Claimants should read the decision letter carefully and seek independent welfare advice if they are unsure how to respond.
Responsibilities
The new measure places greater emphasis on identifying discrepancies, but claimants still have responsibilities under the rules of the benefits they receive.
People should report relevant changes in their circumstances, follow instructions from the DWP and keep records of information submitted about their claims. Changes involving savings, household arrangements, income or other financial circumstances may be relevant, depending on the benefit.
It is also important to distinguish between an administrative error and deliberate fraud. Incorrect payments can arise for different reasons, including outdated information, misunderstandings or changes that have not yet been processed. The circumstances must be assessed before conclusions are reached.
Anyone who receives a letter about a review should check that it is genuine, read what information is being requested and respond through the official channels provided. People should never share banking passwords, PINs or one-time security codes in response to unsolicited messages claiming to be from the DWP.
The department’s official Universal Credit guidance explains the programme’s main rules and responsibilities. Claimants receiving Pension Credit or New Style Employment and Support Allowance should consult the guidance specific to their own benefit.
Impact
The EVM represents an additional mechanism for the government to check whether certain benefit payments appear consistent with eligibility requirements. It may help the DWP identify cases for review without relying exclusively on information supplied directly by claimants.
At the same time, the measure raises understandable questions about privacy, joint accounts and the interpretation of financial information. A bank account may involve more than one person, and a transaction or balance may not always mean what it appears to mean without further context.
For claimants, the practical priority is to understand the rules that apply to their benefit, report relevant changes and respond to official enquiries. People who believe a decision is incorrect have routes to challenge it, including mandatory reconsideration where applicable.
The new bank-checking measure is intended to help identify potential incorrect payments, but an eligibility indicator is not proof of fraud. Its consequences for any individual will depend on the information identified, the benefit rules and the outcome of the DWP’s review.
