DWP issues first notice to banks to check benefit claimants' savings and time abroad

On 26 October 2026 the Department for Work and Pensions (DWP) announced that it had issued its first Eligibility Verification Notice. The notice requires banks to share information that helps check whether someone is still entitled to benefits.

How the new measure works

The measure is called the Eligibility Verification Measure (EVM). Banks are asked to identify accounts of benefit recipients where data suggests they may no longer meet the rules. The focus is on undeclared savings and on time spent abroad beyond what the rules allow. DWP regards these as two main drivers of fraud and error.

The government estimates the EVM will save £1.2 billion by 2030/31. According to DWP, undeclared savings and time abroad in Universal Credit and Pension Credit alone cost taxpayers £1.5 billion in 2025–26. The overall rate of fraud and error in the system for 2025–26 is estimated at 3.2%.

Notices may only be issued in relation to Universal Credit, Pension Credit and Employment and Support Allowance. The powers come from the Public Authorities (Fraud, Error and Recovery) Act 2025.

Data protection assurances

DWP stresses that it does not get access to people's accounts, transactions or spending. Banks only check accounts that receive benefits against certain criteria and flag cases that may need further enquiries. According to the department, a flag does not indicate fraud, and no decision about entitlement can be made on EVM information alone.

Lilian Greenwood, Minister for Innovation, Fraud and Debt, said the department is not interested in where people do their weekly shop or how much they spend on clothes. She added that banks will only be asked to identify people who may no longer meet the rules.

The measure will begin with a carefully managed "test-and-learn" phase and remain under independent oversight before any wider rollout. A statutory Code of Practice also sets out safeguards, and it was subject to public consultation.

Wider plans

The EVM is part of a plan to save £14.6 billion over five years by tackling fraud, error and debt. A further package, due to be unveiled at the Budget, is expected to save £1.4 billion between 2027 and 2032. It includes 2,000 additional anti-fraud specialists in Jobcentres and tougher checks on Universal Credit claims made from abroad. The government also promises further welfare reform following the Milburn and Timms reviews, due in the autumn.

What this means for you

The changes affect anyone receiving Universal Credit, Pension Credit or ESA. People on these benefits should remember to report savings and longer trips abroad, in line with the rules of their benefit. DWP says a bank flag is not the same as an accusation of fraud, but it may lead to further questions from the department. For now, the system will operate in a test phase.