The Department for Work and Pensions (DWP) has confirmed that claimants with bank balances of £16,000 or more will face account checks as part of a new crackdown. Eligibility Verification Notices (EVNs) are being issued to banks, requiring them to provide key details about accounts linked to Universal Credit that exceed this capital threshold.
How the EVN System Works
Under the new rules, financial institutions must hand over information requested by the DWP. An EVN may specify that banks return data on accounts receiving Universal Credit (or linked to such accounts) that hold more than £16,000. This figure represents the capital limit for Universal Credit eligibility.
The DWP states: "The ask may vary; for example, it may be that information is only returned in cases where there is a specific amount above £16,000, or it may be that DWP lowers this amount to help verify the correctness of payments where a claimant has between £6,000 and £16,000."
This is because a person’s Universal Credit award entitlement is tapered when they have capital between £6,000 and £16,000.
Government's Stance on Benefit Fraud
Work and Pensions Secretary Liz Kendall told MPs: "Our new eligibility verification measure will enable us to require banks or other financial institutions to provide crucial data to help identify incorrect benefit payments people might be getting, including fraudulently, such as if someone has too much in savings, making them ineligible for a benefit, or if they are fraudulently claiming benefits abroad when they should be living in the UK."
She added: "People should not be getting benefits they are not entitled to, and the alerts will make the process of identifying potential fraudsters much simpler, quicker and easier. However, we know that people lead busy lives and sometimes genuine mistakes happen. The measure will help there too, by finding and putting errors right quickly, preventing people from building up large debts that they then need to repay."
Protections and Oversight
Kendall emphasised: "I want to stress to the House that, under our eligibility verification measure, the DWP will not be able to access people’s bank accounts or look at what they are spending. We will not share any personal information with banks."
Once an alert is issued, any final decision about someone’s benefits will always be taken by a human being, and the state pension will be excluded from the measure. There will also be independent oversight of the power on the face of the Bill, with the requirement to produce reports and lay them before Parliament.
The DWP is also launching an independent investigation into the overpayment of Carer's Allowance to learn lessons and prevent future errors.
