The Department for Work and Pensions (DWP) has formally responded to a challenge from consumer champion Martin Lewis, who highlighted a major flaw preventing millions of Universal Credit claimants from switching bank accounts with ease.
Banking Barrier for Millions
In a letter sent to the DWP, financial expert Martin Lewis argued that the department's current procedures are locking an estimated 8.3 million Universal Credit claimants out of using the popular Current Account Switch Service (CASS). This free service is designed to make changing banks simple, but Lewis claims bureaucratic DWP rules are undermining its purpose.
The core of the problem, according to Lewis, is a requirement for many claimants to attend an in-person appointment at a Jobcentre simply to verify new bank details. He stated this creates a significant practical barrier, involving unnecessary "hassle, cost, and a possible loss of income" for those who may struggle to travel or take time off work.
DWP Defends Security Stance
The DWP issued a statement on Tuesday, 16th December 2025, acknowledging receipt of Lewis's letter and thanking him for raising the concerns. In its initial defence, the department emphasised its commitment to security.
"We are committed to ensuring payments reach the right person and are protected from exploitation or impersonation," a DWP spokesperson said. The department stressed that personal information must be "treated securely," implying the in-person checks are a vital fraud prevention measure.
Calls for Common-Sense Reform
Martin Lewis, founder of MoneySavingExpert.com, countered that the DWP's process "perverts the ease" of the switching service. He copied his letter to UK Finance and the CASS to highlight what he sees as a systemic issue affecting financial inclusion.
To resolve the impasse, Lewis proposed several immediate solutions for the government to adopt, including:
- Implementing secure remote verification processes.
- Offering more flexible appointment times for claimants.
- Reducing the reliance on physical attendance for administrative updates.
MoneySavingExpert emphasised that true financial inclusion means having the ability to choose and switch financial products with relative ease. The organisation argues that the DWP's current approach contradicts this principle by erecting needless physical and logistical hurdles for some of the most financially vulnerable people in society.
The DWP has promised a full response to Lewis's detailed letter in due course.
