The UK Government has introduced new rules giving banks the power to share targeted financial information with the Department for Work and Pensions (DWP) to help identify incorrect benefit payments, affecting over 7 million households claiming Universal Credit, Pension Credit and other benefits.
Eligibility Verification Measure: how it works
The new measure, known as the Eligibility Verification Measure (EVM), is designed to expose benefit fraudsters and pinpoint those incorrectly receiving payments. It covers those receiving Universal Credit, Pension Credit and New Style Employment and Support Allowance.
Banks must supply the DWP with specific details regarding bank accounts, alongside other financial data if they receive an EVM notice. The DWP clarified that it will "share certain information with banks and other financial institutions, known as 'eligibility indicators'", reports the Express.
"These indicators are based on benefit eligibility rules and help institutions identify accounts that may need to be checked by DWP. This helps ensure people receive the benefits they are entitled to," the DWP statement continued.
What data can banks share with the DWP?
Financial institutions will check the information they hold on accounts receiving certain DWP benefit payments. They will tell the DWP when a personal account into which a relevant benefit is paid meets an eligibility indicator. This includes linked accounts, which may belong to either a claimant or a non-claimant.
The data that banks can pass on to the DWP encompasses account holder names, particulars of additional accounts (including joint ones), account numbers and sort codes, account balances and transaction dates. Nevertheless, they cannot disclose complete bank statements, specifics of expenditure, precise transaction locations, or personal details regarding backgrounds or religions.
Impact on claimants and review process
Approximately 8.4 million people across more than 7 million households currently receive Universal Credit, taking the overall welfare expenditure for Universal Credit to £80 billion. It has also emerged that the UK has spent £1.6 trillion on working-age benefits over the past two decades.
The DWP clarified: "If information shared by your bank suggests you may be getting an incorrect benefit payment, DWP will review your claim. You must keep your information up to date so that you get the correct amount of benefit. Any delay may mean you receive too much money and may have to make a repayment."
Individuals who contest a determination regarding their eligibility will retain the right to request a fresh review, through a "mandatory reconsideration".
