The Department for Work and Pensions has issued its first Eligibility Verification Notice, marking the launch of a significant new initiative designed to tackle benefit fraud and error while safeguarding public finances.
Under the new Eligibility Verification Measure, banks will be required to share limited information with the DWP to help identify benefit claimants who may no longer meet eligibility criteria. The Government expects the measure to save taxpayers £1.2 billion by 2030/31 and says it will play a key role in reducing fraud and incorrect benefit payments.
The move forms part of the Public Authorities (Fraud, Error and Recovery) Act 2025 and contributes to wider government plans to deliver £14.6 billion in taxpayer savings over the next five years.
The EVM will initially target two of the most common causes of benefit fraud and error: undeclared savings and claimants remaining overseas longer than benefit regulations allow.
Government officials say the scheme is designed to identify potential issues earlier, helping prevent overpayments from building up and reducing the likelihood of claimants falling into debt through repayment obligations later.
Importantly, the DWP has stressed that the new powers do not provide access to detailed banking records, spending habits or transaction histories. Instead, financial institutions will only be asked to assess benefit-receiving accounts against specific eligibility criteria and notify the department when a review may be necessary.
A notification from a bank will not automatically indicate fraud, nor will it result in an immediate change to benefit entitlement. Any concerns raised through the process will require further investigation before any action is taken.
The introduction of Eligibility Verification Notices is one element of a broader government strategy to strengthen welfare system integrity and reduce public expenditure on fraud and error.
Further reforms expected to be announced at the upcoming Budget are forecast to generate an additional £1.4 billion in savings between 2027 and 2032.
These measures are expected to include:
- The deployment of 2,000 additional anti-fraud specialists in Jobcentres across the UK.
- Enhanced checks on Universal Credit claimants who spend extended periods abroad without notifying authorities.
- Strengthened enforcement and debt recovery powers.
- Expanded information-gathering capabilities to support fraud investigations.
The Government has also indicated that further welfare reforms will follow the publication of the Milburn and Timms reviews later this autumn, alongside ongoing investment in employment support for disabled people and those with long-term health conditions.
Minister for Innovation, Fraud and Debt Lilian Greenwood said:
“Benefit fraudsters should be looking over their shoulder. These new powers will help us crack down on those who deliberately abuse the system, while ensuring people receive the right support at the right time.
“We are not interested in where people do their weekly shop or how much they’re spending on new clothes. Banks will simply be asked to identify if somebody may no longer meet the rules for the benefits they receive, allowing us to investigate further where necessary.
“With £1.2 billion in savings expected by 2030/31, this is a major step forward in tackling fraud and error, protecting public money and ensuring support goes to those who genuinely need it.”
The DWP says the programme will begin with a controlled test-and-learn phase before any wider implementation. The scheme will also be subject to independent oversight throughout its development and operation.
Ministers argue that the reforms strike a balance between protecting public money and ensuring legitimate claimants continue to receive the support they are entitled to, while improving confidence in the welfare system.
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