The Department for Work and Pensions (DWP) has announced a significant new measure to verify benefit claims, focusing on bank balances that reach a specific threshold. Under the Eligibility Verification Measure (EVM), the DWP will initiate checks when a claimant's total money, savings, and investments hit £16,000. This initiative targets potential fraud and errors in key benefits, including Universal Credit, Pension Credit, and Employment and Support Allowance (ESA).
How the £16,000 Threshold Works
For Universal Credit claimants, the rules stipulate that single individuals or those living with a partner must typically have no more than £16,000 in combined financial assets. Exceeding this amount can trigger a DWP investigation due to suspicions of ineligibility. The DWP explains that this threshold is a critical part of ensuring benefits are paid correctly and only to those who qualify.
Data Verification and Fraud Prevention
The DWP utilises various data sources to cross-check information provided by claimants. For instance, data from HM Revenue and Customs (HMRC) is used to verify employment and income details that affect benefit eligibility. However, for other criteria like savings or investments, such information is not always readily available in a timely manner.
This gap can lead to overpayments due to fraud or genuine errors, resulting in debt for claimants and financial losses for taxpayers. The EVM aims to bridge this gap by improving the DWP's access to relevant data from banks and financial institutions.
Impact on Claimants and Public Services
When the DWP deems it necessary and proportionate, it will issue an Eligibility Verification Notice (EVN) to financial institutions. These institutions are required to provide limited information related to the eligibility rules for specific benefits, without exceeding the requested data.
The government emphasises that fraud against the public sector is not a victimless crime. It diverts funds from essential public services, undermines trust, and harms innocent individuals. Ultimately, it is the taxpayer who suffers from these fraudulent activities.
Ensuring Correct Payments
The EVM is designed to help the DWP verify entitlements accurately, prevent overpayments, and avoid the accumulation of debt. By identifying both fraudulent claims and genuine mistakes, the system ensures that claimants receive the correct amount of money they are entitled to at the right time.
This proactive approach not only protects public funds but also supports claimants by preventing large overpayments that would need to be repaid later. The DWP's focus remains on safeguarding the integrity of the benefit system while ensuring eligible individuals receive the support they need.
