The DWP has published guidance explaining how banks can be required to flag accounts where there is a possibility of fraud or error. The checks can include joint accounts and any other account into which the relevant benefits are paid. However, banks cannot supply full statements or details of how you spend your money under this measure.
The Public Authorities (Fraud, Error and Recovery) Act passed into law in December 2025. One of its provisions allows the DWP to require banks and other financial institutions to examine their records to highlight where someone may not be eligible for the benefits that they are being paid.
The DWP has now issued guidance about how these powers are used.
Which benefits are affected?
The checks cover Universal Credit, Pension Credit and New Style ESA. They apply to England, Scotland and Wales.
PIP is not included, although if you receive both PIP and UC you could have your account checked because it receives UC.
The guidance was published on 13 October. It explains existing powers rather than announcing their introduction.
Does the DWP need grounds to suspect you?
The DWP does not need to suspect an individual of wrongdoing before these checks take place.
Instead, it issues an Eligibility Verification Notice requiring a bank to identify accounts meeting criteria based on benefit rules. For example, accounts could be flagged where savings exceed a capital limit or overseas transactions suggest someone may have been abroad longer than their benefit rules allow.
But a match does not establish that someone has been overpaid or is committing fraud and requests cannot target named claimants.
What can banks disclose?
Where the criteria are met, banks may supply:
- Account holders’ names.
- Account numbers and sort codes.
- Details of linked and joint accounts.
- Information about balances.
- Dates of transactions abroad.
They cannot supply full statements, transaction histories, spending details, specific transaction locations or sensitive information such as religious beliefs. The DWP cannot access your online banking or watch your account in real time.
Linked accounts are other accounts held by someone who holds the account receiving the relevant benefit payment. These could include savings accounts which do not receive any benefit payments. Non-claimants can be affected, including appointees receiving someone else’s benefit into a personal account.
Will you know your account has been checked?
The guidance does not require an individual to be notified whenever a bank checks an account or passes information to the DWP. Nor does it give a deadline for telling you.
In fact, the DWP’s code of practice says it will not tell account holders every time a bank shares information with it. However, if it contacts you because action is needed to check your entitlement, it says it will explain what information led to that contact
You can request personal information held about you by the DWP, including evidence used in an investigation. This is called a subject access request.
If the DWP reviews your claim, it may ask questions or request evidence through your journal, by telephone, letter or text. If you are investigated in this way, try to get support from a local advice agency or law centre.
You can read the new DWP guidance here.
