The UK Department for Work and Pensions (DWP) issued new guidance on July 5, 2026, detailing the scope of its Eligibility Verification Measure (EVM) to combat welfare fraud and errors.
The EVM initially targets accounts of Universal Credit, Pension Credit, and Employment and Support Allowance (ESA) claimants.
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Under the system, banks will check for specific eligibility indicators, such as capital exceeding £16,000 or signs of prolonged overseas travel.
The DWP stated the measures aim to identify incorrect payments from fraud, claimant error, or official error, and prevent massive overpayments.
Benefit fraud and error caused £9.6 billion in overpayments in the 2025/26 financial year, officials noted.
However, the DWP emphasized that financial institutions are bound by strict legal limits and cannot share transaction details or personal spending habits.
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“DWP is prohibited by law from sharing personal data with financial institutions under this power, and from requesting transaction information and special category data,” the guidance document states.
The policy also bans the DWP from asking banks to search for specific claimants by name.
“No decisions about benefit entitlement will be made automatically on this information alone,” says the newly published Code of Practice on Eligibility Verification Notices.
The DWP will begin a limited “Test and Learn” rollout with a small number of financial institutions before expanding the system.
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An online petition started by Fionnuala Donnelly opposes the measures, arguing they create a dangerous precedent and compromise personal data privacy.
