The Department for Work and Pensions (DWP) has been urged to revoke planned new powers targeting claimants of Universal Credit, Pension Credit, and Employment and Support Allowance (ESA). The proposed measures would allow staff to seize cash from bank accounts and scrutinise them for signs of fraud and error.
New Powers Under Fire
Under the new rules, DWP staff would be empowered to compel banks to hand over account details after issuing an Eligibility Verification Notice (EVN). These powers are aimed at benefits with the highest fraud rates: Universal Credit, Pension Credit, and ESA.
A petition created by Fionnuala Donnelly calls on the Labour government to halt the checks. It states: "I want the parliament to reconsider recent powers it has given DWP under universal credit to require banks to carry out certain checks linked to benefit eligibility for vulnerable people. I want them to consider rescinding these powers, especially where they appear to be used inappropriately."
Concerns Over Privacy and Vulnerability
The petition argues that Universal Credit claimants are often vulnerable and that the powers set a dangerous precedent for government access to bank information without justification. It raises serious concerns about GDPR compliance and the potential mishandling of personal data. "If accused of tax evasion, your bank information is still considered private. DWP can routinely do this with no evidence of wrongdoing," the petition adds.
If the petition reaches 10,000 signatures, the government will respond. At 100,000 signatures, it will be considered for parliamentary debate. The petition remains open until 25 September 2026.
Eligibility Verification Notices
Under the shake-up, EVNs will be sent to banks and financial institutions, specifying required information and eligibility indicators to determine data sharing with DWP.
Big Brother Watch has criticised the plans, warning: "We defeated the powers when they were snuck into a bill at the last minute by the previous Conservative government, but unfortunately Labour resurrected the plans. Thanks to our efforts, we succeeded in rolling back the most egregious privacy violations, but the powers are still an unprecedented expansion of suspicionless mass surveillance, deputising private banks as an arm of the state and treating benefits recipients as suspects-by-default."
The organisation says the powers will force banks to trawl through accounts and report overpayments based on secret criteria, risking "horizon-style injustices" that disproportionately affect disabled people, carers, older people, and those in poverty.
