DWP Reveals More Details on Planned Bank Data Access Powers

The Department for Work and Pensions (DWP) has provided further clarification on its proposed powers to access claimants’ bank account information, part of the upcoming Fraud, Error and Debt Bill currently progressing through Parliament.

 

The bill, central to the government's efforts to combat benefit fraud, includes new powers allowing the DWP to request data from financial institutions to verify eligibility for welfare support. These proposals are currently under discussion in the House of Lords.

 

Baroness Maeve Sherlock, Minister of State for the DWP, outlined how the new system would function. At the heart of the legislation is the Eligibility Verification Measure, which authorises the DWP to issue an Eligibility Verification Notice to banks or other financial bodies. Upon receipt of such a notice, institutions would be legally required to provide specified financial details.

 

The type of data that can be requested includes the account holder’s name, date of birth, sort code, account number, and other relevant information that could help assess whether the account affects the person’s benefit eligibility.

The government argues that these new measures are needed to ensure claimants meet financial eligibility criteria for benefits such as Universal Credit. For instance, having savings above £16,000 can disqualify a person from receiving Universal Credit in most situations.

 

Baroness Sherlock stated the rollout will take place gradually over 12 months, beginning with a limited number of financial institutions.

 

The minister also addressed another component of the bill—the proposed introduction of Direct Deduction Orders, which would enable the DWP to recover money directly from a claimant’s earnings or bank account. This power is already used by HM Revenue and Customs and the Child Maintenance Service.

 

According to Baroness Sherlock, the DWP anticipates issuing between 5,000 and 20,000 Direct Deduction Orders annually.

The measures are part of what the Labour government describes as the most significant anti-fraud initiative in decades. Officials estimate the changes could recover £1.5 billion in overpayments and fraud-related losses over the next five years.

 

 

  Adapted by ASEAN Now from The Independent 2025-07-29

 

 

 

14 minutes ago, CharlieH said:

The type of data that can be requested includes the account holder’s name, date of birth, sort code, account number, and other relevant information that could help assess whether the account affects the person’s benefit eligibility.

The government argues that these new measures are needed to ensure claimants meet financial eligibility criteria for benefits such as Universal Credit. For instance, having savings above £16,000 can dis

Completely BS, as the DWP already pay pensions into our bank accounts, and already have all those details. They already know our level of savings, as HMRC tax the interest on those savings.

 

What they really want is to monitor our bank statements, seeing all our financial transactions. But I guess, they dare not say that straight out.

1 hour ago, BritManToo said:

Completely BS, as the DWP already pay pensions into our bank accounts, and already have all those details. They already know our level of savings, as HMRC tax the interest on those savings.

 

What they really want is to monitor our bank statements, seeing all our financial transactions. But I guess, they dare not say that straight out.

Fair comment, yes they have details of ONE account that you give them, but this sill allow them to look at ALL accounts you may have, not just the one you use to receive payment.

24 minutes ago, CharlieH said:

Baroness Maeve Sherlock

Is this her nick-name??😁

Anyway it's a good step up to prevent any criminal issues concerning pensions. Too much misuse a loophole obviously.

thank these lovely people, and a host of others who have not been to trial yet

 

Quote

The perpetrators of the largest case of benefit fraud in England and Wales have been jailed for between three and eight years.

The gang admitted to stealing more than £50m between them.

The three women and two men - all Bulgarian - made thousands of false claims for Universal Credit between 2016 and 2021.

 

 

https://www.bbc.com/news/articles/c844g4kpjxdo

6 hours ago, newbee2022 said:

Is this her nick-name??😁

 

Nickname is No-sh!t Sherlock 

2 minutes ago, lamyai3 said:

 

Nickname is No-sh!t Sherlock 

Because she's telling the truth?

6 hours ago, CharlieH said:

Fair comment, yes they have details of ONE account that you give them, but this sill allow them to look at ALL accounts you may have, not just the one you use to receive payment.

 

And because DWP knows which account they are paying in, does that also mean that they know the balance, interests paid, and where withdrawals from that account happen?

I think the OP means that they will know all that in the future, but not yet

6 hours ago, CharlieH said:

Baroness Sherlock stated the rollout will take place gradually over 12 months, beginning with a limited number of financial institutions.

 

Do  it slowly and hope no one notices  similar to boiling the frog slowly so it doesn't notice and jump out of the pot !

2 minutes ago, CallumWK said:

I think the OP means that they will know all that in the future, but not yet

They want and will know   the digital panopticon is almost upon us.

6 hours ago, BritManToo said:

Completely BS, as the DWP already pay pensions into our bank accounts, and already have all those details. They already know our level of savings, as HMRC tax the interest on those savings.

 

What they really want is to monitor our bank statements, seeing all our financial transactions. But I guess, they dare not say that straight out.

What are you afraid of?

In Sweden I can see what my neighbour is earning per month, what taxes he pays, what morgages he got with the banks and many other details.

That is one of many reasons corruption is very low because difficult.

This new law should really only be of concern to those who are claiming benefits in addition to their state pension!

1 minute ago, newbee2022 said:

What are you afraid of?

In Sweden I can see what my neighbour is earning per month, what taxes he pays, what morgages he got with the banks and many other details.

That is one of many reasons corruption is very low because difficult.

 

Not only corruption is very low, but privacy as well, if what you say is true

Just now, newbee2022 said:

What are you afraid of?

If you don't know yet  you soon will

(maybe exceptions for Dr Jabbers)..when those "government officials" come knocking saying we are here to help !!!

1 minute ago, DezLez said:

This new law should really only be of concern to those who are claiming benefits in addition to their state pension!

 

And those not declaring they live in Thailand ? 🙂 

1 minute ago, johng said:

If you don't know yet  you soon will

(maybe exceptions for Dr Jabbers)..when those "government officials" come knocking saying we are here to help !!!

You again! Not necessary to comment more.

1 minute ago, CallumWK said:

 

And those not declaring they live in Thailand ? 🙂 

Those who declare they live in Thailand already get shafted  with no inflation related update to their pension , a total disgrace and scam.

1 minute ago, newbee2022 said:

You again! Not necessary to comment more.

I'll comment as much as I like, thanks very much.

3 minutes ago, CallumWK said:

 

Not only corruption is very low, but privacy as well, if what you say is true

Yes, and nobody is complaining. 

13 minutes ago, johng said:

Those who declare they live in Thailand already get shafted  with no inflation related update to their pension , a total disgrace and scam.

 

That is also why I said, those who do NOT declare

41 minutes ago, CallumWK said:

 

And those not declaring they live in Thailand ? 🙂 

That should have no impact as they are talking about those claiming additional benefits when often those investigations are looking to see if you have over £16,000  stashed away when you claim them.

Assuming you have more than one UK bank A/C and do not have a standing order (sic) to transfer your pension directly to a Thai bank a/c from the A/C your pension is paid into then it should not be a problem as the interbank transfer reporting limit is sums of £5,000 and above.

In other words a Pension paid into UK bank A/c One and transferred out to another UK bank a/c and then Transferred via Wise or WU it will normally fall below the reporting thresholds/DWP radars.

I think we should have a poll:

What is the purpose of Government

Here's a few of my options:

1. Collect as much tax as possible.

2. Snoop on everybody.

3. Control the population (limit individual freedoms).

4 Ensure the rich get richer and the poor get poorer (those in the middle have to fend for themselves).

5 Keep themselves in power.

 

 

7 hours ago, The Cyclist said:

The perpetrators of the largest case of benefit fraud in England and Wales have been jailed for between three and eight years.

The gang admitted to stealing more than £50m between them.

The three women and two men - all Bulgarian - made thousands of false claims for Universal Credit between 2016 and 2021.

This says it all £50 million fraud - between three and eight years in prison!!! and where is the money. And they were Bulgarian not from the UK!! so how does this justify snooping on my bank account

7 minutes ago, DezLez said:

That should have no impact as they are talking about those claiming additional benefits when often those investigations are looking to see if you have over £16,000  stashed away when you claim them.

 

If you are in receipt of a payment of any description that comes from the DWP, you can bet your last £ that those accounts will be getting checked, up to and including, where the money is going. Especially if that money is, or is suspected of leaving the UK.

 

See my post above. It was not the British Authorities or the DWP that caught the gang of Bulgarians, it was a Bulgarian Policeman, in a village, who started probing where all the money was coming from in his small Bulgarian village.

 

This is not restricted to the Eastern Europeans.

 

 

3 minutes ago, Negita43 said:

This says it all £50 million fraud - between three and eight years in prison!!! and where is the money. And they were Bulgarian not from the UK!! so how does this justify snooping on my bank account

 

This is only 1 case that has been already been to Court. There are more cases that have not reached Court yet.

 

If the scale of fraud is so endemic, I do not see any reason why the DWP should not be able to check what is happening with the money that they dish out, in an attempt to stop the fraudulent claiming of taxpayers money.

 

A lesson that UK Governments and associated Departments need to get into their heads. It is not Government or DWP money, it is taxpayers money.

8 minutes ago, The Cyclist said:

A lesson that UK Governments and associated Departments need to get into their heads. It is not Government or DWP money, it is taxpayers money.

Point taken.

BUT in every aspect of life it seems the law abiding citizen is put upon in the name of catching criminals - and please if you have done nothing wrong etc is not an answer because what within the law now may not be in the future at the whim of government.

42 minutes ago, Negita43 said:

Point taken.

BUT in every aspect of life it seems the law abiding citizen is put upon in the name of catching criminals - and please if you have done nothing wrong etc is not an answer because what within the law now may not be in the future at the whim of government.

 

I agree.

 

But that is what happens when Governments allow a system, or more precisely, various systems of Governmental Departments to get out of control.

 

It sucks, but that is why I am in Thailand and not the UK.