{"id":120533,"date":"2026-05-15T09:55:00","date_gmt":"2026-05-15T08:55:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=120533"},"modified":"2026-05-15T09:51:01","modified_gmt":"2026-05-15T08:51:01","slug":"dwp-confirms-what-it-will-never-see","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/dwp-confirms-what-it-will-never-see\/","title":{"rendered":"DWP Confirms What It Will Never See in Your Bank Account under New Fraud Powers"},"content":{"rendered":"\n

The measures form part of the Labour government\u2019s proposed Eligibility Verification Measure, which will initially apply to Universal Credit, Pension Credit and Employment and Support Allowance claimants. According to guidance published by the DWP<\/strong>, financial institutions may be asked to identify accounts that meet certain eligibility indicators linked to benefit rules.<\/p>\n\n\n\n

The government says the system is intended to reduce incorrect payments and prevent large overpayments from building up over time. Civil liberties groups and privacy campaigners have raised concerns about the scope of the powers, prompting the DWP to publish further details on how the checks would operate and what information would remain off limits.<\/p>\n\n\n\n

Under the proposed framework<\/strong>, banks would not hand over detailed account activity to the government. Instead, they would apply specific criteria across their own systems and return limited information only where accounts meet conditions outlined in an Eligibility Verification Notice.<\/p>\n\n\n\n

Banks Barred from Sharing Transaction and Spending Data<\/strong><\/h2>\n\n\n\n

According to the DWP\u2019s Code of Practice<\/a> on Eligibility Verification Notices, financial institutions are legally prohibited from sharing transaction histories, spending information, financial statements and \u201cspecial category data\u201d such as political opinions, religious beliefs or ethnicity.<\/p>\n\n\n\n

The guidance states that the DWP cannot see what claimants are buying, where they shop or how they spend their money. Health information <\/strong>is also excluded from the data-sharing process.<\/p>\n\n\n\n

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The department said: \u201cDWP must only request the minimum information to identify individuals who meet the eligibility indicators, and relevant details related to how the indicators have been met<\/em>.\u201d<\/p>\n<\/blockquote>\n\n\n\n

The guidance also makes clear that banks cannot be instructed to search for named benefit claimants. Instead, financial institutions would examine accounts already receiving certain benefits and flag cases where accounts appear to breach existing eligibility rules<\/strong>.<\/p>\n\n\n\n

Examples could include accounts holding savings above the \u00a316,000 capital limit <\/strong>for Universal Credit or evidence suggesting an account has been consistently used outside the United Kingdom for longer than benefit rules normally allow.<\/p>\n\n\n\n

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Encouraging to see @DWPgovuk<\/a> adopt some @Z2K_trust<\/a> recommendations in the Code of Practice on new claimant bank data powers.

Serious concerns remain \u2013 close monitoring will be critical as this is rolled out. pic.twitter.com\/L1njK9rnLw<\/a><\/p>— Samuel Thomas (@sml_thms) May 14, 2026<\/a><\/blockquote>