The United Kingdom government has begun using new anti-fraud powers requiring banks to help identify benefit claimants who may have undeclared savings or have spent longer abroad than benefit rules allow, in a move expected to save taxpayers £1.2bn by 2030/31.
The Department for Work and Pensions disclosed this in a statement published on Monday, announcing that it had issued its first Eligibility Verification Notice to a financial institution.
According to information reported from the UK website, “benefit fraud occurs when a person deliberately misleads the government or fails to report a change in circumstances to receive financial assistance they are not entitled to.”
The department said the Eligibility Verification Measure would help identify claimants who might no longer meet the eligibility requirements for certain benefits.
“The Eligibility Verification Measure (EVM) – expected to save taxpayers £1.2 billion by 2030/31 – will ask banks to help identify claimants who may have undeclared savings or remain abroad longer than benefit rules allow, two major drivers of fraud and error,” the statement read.
It said the measure was introduced under the Public Authorities (Fraud, Error and Recovery) Act 2025 and formed part of the government’s plan to save £14.6bn over five years by tackling fraud, error and debt.
The department said the measure would also help identify incorrect payments earlier, adding that it would ensure people received the support they were entitled to while reducing the risk of overpayments accumulating and claimants falling into avoidable debt.
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.”
She added, “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.”
Greenwood said, “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.”
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The department clarified that the measure would not give it access to claimants’ bank accounts, transactions or spending habits.
“The powers do not give DWP access to people’s bank accounts, transactions or spending habits,” the statement said.
It added, “A flag does not indicate fraud or wrongdoing, and no decision about a person’s benefit entitlement can be made on EVM information alone.”
The department said the measure would begin with a test-and-learn phase and remain subject to independent oversight before any wider rollout.
It said banks would be asked to check relevant benefit-receiving accounts against specific eligibility rules and flag cases requiring further enquiries. The measure applies to Universal Credit, Pension Credit and Employment and Support Allowance.
The department also announced plans for further reforms, expected to be unveiled at the Budget, which it said would save taxpayers another £1.4bn between 2027 and 2032.
The proposed measures include deploying 2,000 additional anti-fraud specialists to Jobcentres nationwide and strengthening checks on Universal Credit claims involving people living abroad.
The statement said, “It’s estimated that fraud and error from undeclared savings and time spent abroad in relation to Universal Credit and Pension Credit cost the taxpayer £1.5 billion in 2025-26 alone.”It added that the estimated overall rate of benefit fraud and error stood at 3.2 per cent in 2025/26.
