DWP 'to check pensioners' bank accounts' in new crackdown on benefit fraud

The (DWP) has confirmed it will be conducting bank checks on receiving Pension Credit and two other common benefits in a bid to crack down on fraudulent claims. In its latest move to tackle 'incorrectly paid' benefits, the has provided more details about its new legislation,

The department has clarified what it refers to as its 'Eligibility Verification Powers' under this new law and highlighted the key benefits it will target. According to the DWP, the changes will primarily focus on , Pension Credit and Employment and Support Allowance, as these are the benefits "where incorrect payments are currently highest".

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Pension Credit is exclusively available to state pensioners. This benefit serves as an income top-up for those with a low weekly income.

The DWP assesses a pensioner's total income from their state pension, private workplace pension and savings, and then provides a top-up to their state pension if their income falls below a certain threshold - typically around £218 per week.

For instance, individuals on the old basic state pension, which pays a maximum of £176.45 per week, often qualify for Pension Credit, boosting their weekly payment to approximately £220, reports .

Universal Credit is a comprehensive benefit gradually replacing several other benefits, including Tax Credits. It also covers various family benefits and support for those on low incomes. Employment and Support Allowance is a benefit designed to assist those with health conditions who are unable to work.

The Department for Work and (DWP) has spoken out about its new authority to scrutinise the bank accounts of benefit recipients, stating: "This new measure in this Bill will give DWP the power to require banks and other financial institutions to provide information to help verify a claimant's entitlement to benefits and identify incorrect payments.

"Banks and other financial institutions will be required to look at the data they hold on accounts in receipt of a specified DWP benefit payment and match these accounts to specific eligibility indicators determined by DWP (and defined within an Eligibility Verification Notice) and highlight where the criteria have been met.

"This power can only be used to obtain information on accounts that receive a specified DWP benefit, and any accounts linked to that benefit receiving account if they match the eligibility indicators set by DWP."

The DWP clarified that the eligibility indicators are precise criteria that banks and other financial bodies must use to assess relevant accounts. These criteria will reflect the rules for the benefits in question.

For instance, under Universal Credit rules, an individual cannot possess over £16,000 in savings and still qualify for the benefit, barring certain exceptions.

"Any accounts identified will be considered by DWP for further inquiry, if necessary. No decisions about benefit entitlement will be made on this information alone."

While the alterations will primarily affect state pensioners who are Pension Credit claimants, they won't directly impact the state pension itself.

The statement continued: "The measure will initially focus on benefits where incorrect payments are currently highest, these are: Universal Credit, Pension Credit and Employment and Support Allowance.

"Other benefits could be added with the approval of Parliament in the future through affirmative regulations. The State Pension is explicitly excluded from the power and cannot be added by regulations."

The DWP further explained that the data gathered during its checks could assist in determining if a claimant is not entitled to multiple benefits simultaneously.

It elaborated: "When information obtained by DWP in response to an Eligibility Verification Notice subsequently helps identify that a claimant is ineligible for a specified benefit, DWP may also use the information to verify the claimant's eligibility for other benefits.

"For example, where a claimant is eligible for Pension Credit they may also be automatically eligible for Housing Benefit. If information received leads DWP to conclude that a claimant is ineligible for Pension Credit, then the Department will also review the claimant's eligibility for Housing Benefit.

"A human will always be involved in any decision which may affect benefit awards or eligibility."