The Department for Work and Pensions is facing calls to reconsider new powers that would allow it to compel banks to provide information about accounts into which certain benefits are paid. A parliamentary petition, backed by 1,330 people, urges the government to rescind these powers, particularly where they appear to be used inappropriately.
New powers under the Public Authorities Act 2025
The Public Authorities (Fraud, Error and Recovery) Act 2025 contains provisions allowing the DWP to compel banks and other financial institutions to share information about accounts receiving certain benefits. Initially, the benefits in scope are Universal Credit (UC), Pension Credit, and Employment and Support Allowance (ESA).
These changes are part of an 'eligibility verification measure' (EVM), designed to help identify incorrect benefit entitlement. The Act also permits the DWP to recover benefit overpayments directly from a person's bank account and, in certain circumstances, apply to the court for a disqualification of a person's driving licence if they have an outstanding overpayment of at least £1,000.
Petition calls for reconsideration
The petition, created by Fionnuala Donelly on the parliamentary petition website, 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." It continues: "I want them to consider rescinding these powers especially where they appear to be being used inappropriately."
The petition adds: "People on universal credit are often vulnerable people. We believe it sets a dangerous precedent for a government department to have unchallenged access to bank account information with no justification. 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. If accused of tax evasion your bank information is still considered private. DWP can routinely do this with no evidence of wrongdoing."
Next steps for the petition
If the petition reaches 10,000 signatures, the government will respond to it. If it reaches 100,000 signatures, it will be considered for debate in Parliament. The petition remains open until 25 September 2026.
