A new petition is calling for the DWP to scrap or reconsider its powers to check information held by banks about Universal Credit claimants – amid concerns over privacy and how the system will be used.
The petition, which has attracted more than 1,300 signatures, calls on Parliament to reconsider powers allowing the Department for Work and Pensions to require banks and other financial institutions to carry out checks linked to benefit eligibility.
It was created by Fionnuala Donnelly and will remain open until September 25, 2026.
The campaigner argues that Universal Credit claimants are often vulnerable and says the new powers raise concerns about the handling of personal financial information.
It can still be signed here.
The petition states: “We believe it sets a dangerous precedent for a government department to have unchallenged access to bank account information with no justification.”
It also raises concerns about data protection, stating: “There are serious concerns around GDPR and how DWP will guarantee that people’s personal information will not be mishandled or uploaded to computer systems without consent.”
The petition adds: “If accused of tax evasion your bank information is still considered private. DWP can routinely do this with no evidence of wrongdoing.”
However, the DWP says the new system does not amount to unrestricted access to claimants' bank accounts or full bank statements.
Can the DWP see your bank transactions?
This is one of the biggest questions surrounding the new powers.
The DWP has been given powers to require banks and other financial institutions to provide information to help verify whether someone remains entitled to benefits and identify incorrect payments.
Under an Eligibility Verification Notice, banks can be required to check accounts against specific eligibility indicators determined by the DWP.
The information that can be provided is limited.
This can include:
- specified details about the account, such as the sort code and account number
- specified details about account holders, such as their name and date of birth
- specified information showing how an account meets the relevant eligibility indicators
The DWP says banks could face a penalty for oversharing information, including transaction information.
So, despite fears about “bank spying”, the Department says the system is not designed to give officials a detailed list of everything a claimant has bought or where they have spent their money.
The DWP also says: “Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence.”
Why is the DWP checking bank accounts?
The new powers form part of the Public Authorities (Fraud, Error and Recovery) Bill and are intended to tackle benefit fraud and incorrect payments.
The system is designed to flag accounts that appear to match specific eligibility indicators.
For Universal Credit, one important example is the capital limit.
Generally, people cannot receive Universal Credit if they have more than £16,000 in savings or other capital, unless a specified exception applies.
A bank check could therefore identify an account that appears to meet an indicator requiring further investigation.
But being flagged does not automatically mean a claimant will lose their Universal Credit.
The DWP says further enquiries or investigations will be handled by the Department in the same way as they are now.
It has also stressed that a human will remain involved in any decision that affects someone's benefit award or eligibility.
The Department says decisions will not simply be made by AI.
Which benefits are covered?
The powers will initially apply to benefits where the DWP says incorrect payments are currently highest.
These are:
- Universal Credit
- Pension Credit
- Employment and Support Allowance (ESA)
Other benefits could be added in the future with Parliament's approval.
However, State Pension is explicitly excluded from the new power and cannot be added through regulations.
When will the checks begin?
The DWP said it expected to begin issuing Eligibility Verification Notices from 2026, so it's likely to have already started.
The system is being introduced gradually in a “test and learn environment” so that the Department and financial institutions can establish how the process should work.
Once fully rolled out, the DWP estimates the measure could identify between 50,000 and 100,000 overpayments each year.
What happens if the DWP thinks you have too much money?
A flag from a bank will not automatically stop someone's benefits.
The DWP says that if further enquiries or an investigation are required, the Department will lead this process, as it does currently.
The Department has also said that “A human will always be involved in any decision taken afterwards which may affect benefit awards or eligibility, as they are now.”
This means the new system is intended to identify cases that may need checking rather than automatically punish claimants.
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What happens to the petition?
The petition currently has 1,330 signatures.
- If it reaches 10,000 signatures, the Government will be required to respond.
- If it reaches 100,000 signatures, it will be considered for debate in Parliament, although reaching that threshold does not guarantee that a debate will take place.
The petition closes on September 25, 2026.
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