The Department for Work and Pensions (DWP) is set to roll out significant new powers, granting it the authority to check the bank accounts of benefit claimants. This major update, confirmed in November 2025, will initially target the benefits with the highest rates of fraud and error.
Which benefits are affected first?
The new monitoring regime will focus on three key benefits at the outset: Pension Credit, Employment and Support Allowance (ESA), and Universal Credit. DWP staff will work alongside major high street banks to scrutinise accounts for suspicious activity, including large transactions and capital holdings that may indicate a claimant is not entitled to the benefits they are receiving.
Expert opinion on fraud prevention
Stuart Morris, the chief technology officer at the compliance group SmartSearch, acknowledged the potential of these powers to reduce fraud and error. He suggested that the framework could be expanded to other government departments such as HMRC and the DVLA.
He explained that benefits involving digital or cash payments are often the most vulnerable to fraud. "Robust digital ID and real-time cross-checking can reduce these risks, ensuring payments reach legitimate claimants efficiently," Morris stated. He also detailed that his company uses a triple-bureau verification system, pulling data from Experian, TransUnion, and Equifax to improve accuracy.
Civil liberties and legal concerns
However, the move has sparked considerable alarm among civil liberties groups. The organisation Big Brother Watch (BBW) has warned of the potential for "expansive surveillance" and a disproportionate impact on vulnerable individuals.
This concern is echoed by legal experts. Dan Squires KC and Aidan Wills of Matrix Chambers have raised serious doubts about the proportionality of the powers. They pointed out that the checks can be conducted without any 'reasonable grounds' to suspect an individual of fraud or error, potentially leading to unnecessary intrusion into the private finances of millions of legitimate claimants.
