The Department for Work and Pensions (DWP) has confirmed that its controversial new powers to check claimants' bank accounts could be significantly expanded. Following an initial focus on three key benefits, the department has outlined plans that could see the checks rolled out to six further major welfare payments.
Initial Focus and Future Expansion
Under new legislation, the DWP now holds the authority to require banks and building societies to provide data to help verify a person's entitlement to state support. This measure is designed to identify and reduce incorrect payments. The department has stated that the power will first be applied to benefits where overpayments are currently highest.
These initial three benefits are:
- Universal Credit
- Pension Credit
- Employment and Support Allowance (ESA)
However, in official guidance published on 15 January 2026, the DWP made clear that this is just the beginning. It confirmed: "Other benefits could be added with the approval of Parliament in the future through affirmative regulations." The state pension is explicitly excluded from these checks.
The Six Benefits Potentially Next in Line
Should Parliament approve the expansion, the DWP's bank account scrutiny could extend to a wider range of support. The six benefits identified as potentially at risk in the future are some of the most commonly claimed across the UK. They include:
Attendance Allowance, Personal Independence Payment (PIP), Carer's Allowance, Disability Living Allowance, Jobseeker's Allowance, and Housing Benefit.
The DWP explained that data gathered for one benefit check could be used to review eligibility for another. For instance, if information suggests a claimant is ineligible for Pension Credit, the department may also automatically review their right to claim Housing Benefit.
How the New Checking System Will Operate
Amid concerns from claimants about privacy and potential errors, the DWP has sought to clarify the process. It insists that a human decision-maker will always be involved before any benefit award is altered or stopped based on this financial data.
Banks will receive formal 'Eligibility Verification Notices' from the DWP. These notices will instruct them to scan accounts that receive specified DWP benefit payments. The financial institutions must match these accounts against specific, pre-defined eligibility indicators set by the DWP.
"No personal information will be shared by DWP," the guidance states. The power can only be used to obtain information on accounts that receive a DWP benefit, and any linked accounts that match the DWP's criteria. The department will not have open access to all customer banking data.
This move represents a significant shift in how benefit fraud and error is tackled, aiming to use real-time financial data to ensure welfare payments go only to those who legally qualify.
