The DWP will check the bank account details of people on three benefits
Security experts are concerned that new powers granted to the Department for Work and Pensions (DWP) to tackle fraud in the benefits system could unfairly target claimants. A broad range of powers have recently been enacted into law, aimed at curbing incorrect and fraudulent payments within the benefits system.
These new measures include the authority for officials to directly withdraw funds from a person’s bank account if they owe money to the DWP and refuse to repay the debt. In separate measures under the new laws, sweeping eligibility checks will be carried out, where officials will request bank details for people claiming certain benefits.
Initially, these checks will be used to verify the details of those claiming Universal Credit, Employment and Support Allowance, and Pension Credit, ensuring claimants are eligible for their payments. Officials plan to begin using these powers in 2026, with the possibility of extending the measures to other benefits.
False positives
However, security experts at compliance group SmartSearch have expressed concerns about these powers, warning that claimants could be unfairly targeted. Chief Customer Officer Collette Smith said: “There are always risks in any system that relies on data checks, whether manual or automated.
“False positives can arise if data is incomplete, outdated, inputted incorrectly or misinterpreted.” She cautioned that appropriate safeguards must be put in place, as “otherwise people could end up having legitimate benefits suspended or be wrongly suspected of fraud”.
Claimants could ‘trigger an alert’
The expert set out how a claimant making a minor change could be incorrectly marked as suspicious. Ms Smith said: “A temporary change in income, shared household accounts, or the way transactions are categorised could trigger an alert without any wrongdoing. This is why proportionality and context matter.”
As part of the legislation, an independent person will be appointed to supervise the use of these powers. They will ensure that the measures are effective in their purpose and that they are only used when necessary.
The DWP has also confirmed it will not have direct access to anyone’s bank account as part of the eligibility checks. In carrying out these checks, officials will liaise with banking providers to obtain specific information about the bank accounts they provide that are linked to benefits.
Officials will not be able to see what claimants are spending their money on.
More powers to investigate DWP fraud
When questioned if the DWP should get even more powers to tackle fraud in the benefit system, Ms Smith cautioned: “There’s a danger in assuming that more powers automatically lead to better outcomes. The focus should be on smarter, not broader, authority.”
She said that data-matching and digital verification checks can prove more effective than expanded powers to investigate suspected fraud. The expert said: “For example, the ability to securely match claimant details with HMRC payroll data, immigration and residency records, and banks through regulated digital identity services could prevent fraud before payments are made. Stronger digital ID frameworks, backed by independent oversight, would reduce reliance on manual checks that are prone to error.”
The SmartSearch team uses ‘triple-bureau verification’, obtaining data from Experian, TransUnion and Equifax, to prevent false matches. Ms Smith said: “Powers that allow the DWP to use verified sources will be more transformative than blanket access to personal data.”
The new legislation also grants fraud investigators greater powers to compel people to provide information, when officials are looking into suspected benefit fraud cases. Previously, the department could only require information from a limited list of parties, but they can now order any third party connected to the suspect to supply the necessary details.
