DWP can now ask banks to flag benefit accounts that may need an eligibility check

What has happened

On 13 October 2026 the Department for Work and Pensions (DWP) published guidance for claimants on the Eligibility Verification Measure. It requires banks and other financial institutions to give DWP information when DWP asks, to help identify incorrect benefit payments. The power comes from the Public Authorities (Fraud, Error and Recovery) Act 2025, and a statutory code of practice sets out how it must be used.

The checks can only cover Universal Credit, Pension Credit and New Style Employment and Support Allowance. DWP gives banks a set of 'eligibility indicators' based on the benefit rules. Banks check accounts that receive these benefits, including linked accounts, and tell DWP when an account meets an indicator. The code of practice says the focus is on things DWP cannot easily check from other data, such as savings or investments and time spent abroad.

The code of practice says DWP will start with a small number of banks and other financial institutions in a Test and Learn period before rolling the measure out more widely. It also sets out the safeguards and how personal data must be protected. An independent reviewer will check that DWP and the banks have followed the law, and their reports will go to Parliament.

What it means for you

DWP cannot log into your online banking or see your account in real time. Banks cannot share full statements, how you spend your money or where you made a transaction. If an account meets an indicator, a bank may share the names of the account holders, account details including joint and linked accounts, account numbers and sort codes, how much money is in the accounts, and the dates of transactions that took place in another country.

A flag does not mean anyone has done anything wrong. GOV.UK says any decision about your benefit or payments will always be made by DWP staff, who may first need to make further enquiries. If your claim is reviewed, DWP may ask you questions or for more information. It will contact you through your online journal if you have one, or otherwise by phone, letter or text message.

The simplest protection is to keep your claim up to date. If DWP finds you have been paid too much because a change was not reported, you may have to pay the money back.

Who it affects

People in Great Britain who get Universal Credit, Pension Credit or New Style Employment and Support Allowance paid into a bank account, and anyone who shares a linked or joint account with them.

What you can do

• Report any change in your circumstances to DWP as soon as possible. GOV.UK lists changes to your money, savings or investments, your income, who lives with you, one-off payments such as gifts, refunds or compensation, and leaving England, Scotland and Wales for any period, including a holiday. You can report a change of circumstances on GOV.UK.
• If DWP contacts you about your claim, reply as soon as you can. GOV.UK says a slow reply can mean your payments are delayed or stopped.
• If you disagree with a decision about your benefit, you can ask DWP to look at it again. This is called mandatory reconsideration.
• If you are asked to repay an overpayment and money is tight, get free debt advice from MoneyHelper, StepChange, National Debtline or Citizens Advice before you agree a repayment amount.
• Tell the office that pays your benefit if you need extra support to manage your claim, for example if you are experiencing domestic abuse. The Universal Credit helpline is 0800 328 5644 and the Pension Service helpline is 0800 731 0469.

Sources

Every fact in this page was checked against these official sources on 1 November 2026.

1. How DWP checks benefit eligibility using the Eligibility Verification Measure Department for Work and Pensions (GOV.UK)
2. Code of Practice on Eligibility Verification Notices Department for Work and Pensions (GOV.UK)

Written and fact-checked by the PiggyBank editorial team. Published 1 November 2026. This news is general information, not financial advice. How we write and check our guides.