The Department for Work and Pensions (DWP) has issued a new code of practice outlining how its forthcoming bank account checks will operate. The Code of Practice on Eligibility Verification Notices (EVNs), released on Thursday, May 14, is now accessible on the DWP website.
New Powers for the DWP
Under the Labour government's fraud prevention initiative, the DWP is being granted authority to examine bank accounts. These checks, formally known as Eligibility Verification Notices, have been detailed in the official documentation. An EVN is the mechanism through which the DWP requests information from financial institutions, the department explained. It is issued by authorized individuals acting on behalf of the Secretary of State and mandates that a financial institution search its records and supply data to assist the DWP in identifying cases where individuals may be receiving incorrect benefit amounts.
Benefits Initially Affected
The three benefits initially targeted are Universal Credit, State Pension Credit, and Employment and Support Allowance. No other benefits are currently within the scope of these rules, the DWP confirmed. However, it cautioned: "If deemed necessary, the list of benefits in scope could be amended in the future using regulations subject to the affirmative procedure. This means that any changes to the benefits in scope must be actively approved by both Houses of Parliament."
Rationale Behind the Checks
The DWP has cited fraud and error as the primary reasons for introducing these notices. Benefit overpayments—where individuals receive more than their entitled amount—cost the government £9.5 billion in the 2024-25 period. Over the approximately five years since the pandemic, around £45 billion was overpaid through the welfare system.
The bank account checks are expected to enhance the DWP's access to critical data, helping to identify incorrect payments, verify benefit entitlements, ensure correct payments, prevent overpayments from accumulating, and avoid debt accrual. The DWP stated: "This will help to reduce fraud and identify errors, including where claimants and/or DWP have made genuine mistakes, and help ensure that claimants receive the correct amount of money they are entitled to. This not only avoids claimants incurring large overpayments that must be repaid but also ensures that eligible people receive the correct amount at the right time."
