The Department for Work and Pensions has confirmed that the State Pension will be explicitly excluded from new bank account verification checks set to commence later this month. This significant development comes as the benefits department prepares to implement enhanced fraud detection measures across three key benefits from February 27, 2026.
Targeted Verification Measures
Under new powers granted by the current Labour government, the DWP will initiate comprehensive bank account monitoring for benefits identified as having the highest rates of incorrect payments. The department's guidance clearly states that Universal Credit, Pension Credit and Employment and Support Allowance will be subject to these new verification procedures.
The implementation follows the conclusion of a public consultation on the Eligibility and Verification measures, which officially ends on February 27. This timeline establishes a clear framework for when these enhanced checks will become operational across the benefits system.
State Pension Exclusion Confirmed
In a notable exemption, the DWP has confirmed that approximately 13 million State Pension recipients will not be subject to these bank account verification checks. The department's official guidance explicitly states: "The State Pension is explicitly excluded from the power and cannot be added by regulations."
This exclusion represents a significant protection for the UK's retired population, ensuring that their primary income source remains outside the scope of these new verification measures. The decision reflects the different nature of State Pension claims compared to means-tested benefits.
Future Expansion Possibilities
While initially focusing on three specific benefits, the DWP has indicated that other benefits could potentially be added to the verification programme in the future. However, any such expansion would require parliamentary approval through affirmative regulations, providing a level of democratic oversight to the process.
The department has emphasised that no automated decisions will be made solely based on the eligibility verification data. Instead, cases where potential fraud is identified against established eligibility indicators will be referred to DWP investigators for further consideration and proper investigation.
Political Response and Concerns
Green Party representative Sian Berry has expressed concerns about the proportionality of the new measures, stating: "It is incumbent on Ministers to come up with a new, more proportionate way to address fraud, where there is reasonable suspicion."
Berry highlighted that administrative errors account for approximately 8% of incorrect payments, many resulting from DWP mistakes rather than claimant fraud. She emphasised: "They are caused by the DWP's mistakes and should not result in a need to treat as suspects people who might make errors in their claims due to lack of clarity in or awareness of requirements."
While acknowledging the importance of tackling fraudulent use of public funds, Berry noted that the government already possesses significant powers to review bank statements of suspected welfare fraud cases. She expressed particular concern that the new eligibility requirements extend "way, way beyond" existing verification measures.
The implementation of these new verification powers represents a significant shift in how the DWP monitors benefit claims, balancing fraud prevention against privacy concerns and administrative burden for legitimate claimants.
