{"id":128464,"date":"2026-11-09T10:30:00","date_gmt":"2026-11-09T10:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=128464"},"modified":"2026-11-09T10:04:48","modified_gmt":"2026-11-09T10:04:48","slug":"universal-credit-claimants-major-update","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/universal-credit-claimants-major-update\/","title":{"rendered":"Universal Credit Claimants Handed Major Update As Government Drops Bank Scrutiny Plan"},"content":{"rendered":"\n

The decision changes how authorities will check whether claimants meet the financial conditions for receiving benefits. Rather than verifying savings before payments begin, the new approach will involve checks after Universal Credit<\/strong> has been paid. The DWP maintains that the replacement scheme will provide a more consistent means of identifying fraud and incorrect payments.<\/p>\n\n\n\n

Why the Government Has Dropped the Original Bank Account Checks<\/strong><\/h2>\n\n\n\n

According to The Telegraph<\/a>, Reeves announced the previous proposal during last year’s spring statement, saying the Government would verify claimants’ bank accounts<\/strong> to establish whether their savings exceeded the permitted threshold.<\/p>\n\n\n\n

Under Universal Credit rules, claimants generally cannot receive the benefit if they have more than \u00a316,000 in money, savings and investments. The limit applies to individual claimants and couples, whose combined finances are assessed.<\/p>\n\n\n\n

Savings below \u00a36,000 do not affect Universal Credit payments. Between \u00a36,000 and \u00a316,000, payments are reduced by \u00a34.35<\/strong> for every \u00a3250 above the lower threshold, with a further \u00a34.35 deducted for any remaining amount below a complete \u00a3250.<\/p>\n\n\n\n

Different eligibility rules can apply to people transferring from tax credits to Universal Credit<\/a> after receiving a Migration Notice<\/strong>.<\/p>\n\n\n\n

Reeves had estimated that her proposed checks would save \u00a3200 million by 2030. The policy formed part of wider efforts to address benefit fraud, which costs the Treasury almost \u00a310 billion annually.<\/p>\n\n\n\n

The original proposal involved Open Banking<\/strong>, which allows financial information to be shared with customer consent, alongside possible face-to-face checks.<\/p>\n\n\n\n

A DWP spokesman explained that the Government had abandoned the approach because it depended on claimant consent and could not be applied to every Universal Credit application. According to The Telegraph, an official Treasury estimate suggests the decision could cost taxpayers \u00a35 million this year and \u00a310 million next year because of higher levels of fraud.<\/p>\n\n\n\n

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On 26 October, the DWP confirmed the first use of its new Eligibility Verification Measure.

The powers apply to Universal Credit, Pension Credit and New Style ESA, not directly to PIP.

Banks can flag accounts that meet specified eligibility indicators, but the DWP cannot access\u2026 pic.twitter.com\/QxOfAZXn3E<\/a><\/p>— Wheelie MS Advocate – #PoweredByExperience – \u267f\ufe0f (@WheelieFUMS) October 27, 2026<\/a><\/blockquote>