DWP issues first Eligibility Verification Notice under new anti-fraud powers

The Department for Work and Pensions (DWP) issued its first Eligibility Verification Notice on 26 October 2026, requiring banks to share information to help the department check someone's benefit entitlement¹. The notice is the first use of the Eligibility Verification Measure (EVM), introduced under the Public Authorities (Fraud, Error and Recovery) Act 2025, which the government expects to save taxpayers £1.2 billion by 2030/31¹.

The measure asks banks to help identify claimants who may have undeclared savings or who remain abroad longer than benefit rules allow, which the DWP describes as two major drivers of fraud and error¹. It estimates that fraud and error from undeclared savings and time spent abroad in relation to Universal Credit and Pension Credit cost the taxpayer £1.5 billion in 2025-26 alone¹. The DWP says the 2025-26 estimate puts the overall fraud and error rate at 3.2%¹.

The department may only issue an Eligibility Verification Notice to financial institutions in relation to three benefits¹:

The DWP says the powers do not give it access to people's bank accounts, transactions or spending habits¹. Banks are asked only to check relevant benefit receiving accounts against certain eligibility rules and flag cases where further enquiries may be required¹. According to the department, a flag does not indicate fraud or wrongdoing, and no decision about a person's benefit entitlement can be made on EVM information alone¹.

The measure has an accompanying statutory Code of Practice, which sets out safeguards that must be followed when the powers are used; the code was subject to public consultation¹. The DWP says the measure will begin with a "carefully managed test-and-learn phase" and remain subject to independent oversight throughout before any wider rollout¹.

Birmingham Live reported that the DWP had been "handed £1.2 billion by the Labour Party government to begin the crackdown"². The government press release does not describe the £1.2 billion in that way; it presents the figure as the expected saving by 2030/31¹. The two accounts differ on this point.

Why it matters for households

People receiving Universal Credit, Pension Credit or Employment and Support Allowance are the group whose accounts banks may check under the notices, because the DWP may issue a notice only in relation to those three benefits¹. A flag raised by a bank is not a finding of fraud, and the DWP says no entitlement decision can rest on EVM information alone¹. The department says the measure will also help identify incorrect payments sooner, reducing the risk of overpayments building up and claimants falling into avoidable debt¹. The DWP has not reported how many notices have been issued, which banks received them, or when individual claimants might be contacted.

The EVM forms part of a wider government plan to save £14.6 billion over the next five years through tackling fraud, error and debt¹. A further package of reforms, to be set out at the Budget, is expected to save another £1.4 billion between 2027 and 2032, including the deployment of 2,000 additional anti-fraud specialists into Jobcentres and tougher checks on Universal Credit claims abroad¹.

What happens next

The measure moves into its test-and-learn phase under independent oversight before any wider rollout; the DWP has not reported a date for that phase to end¹. The further reforms, including the 2,000 anti-fraud specialists, are due to be unveiled at the Budget¹. The Milburn and Timms reviews of the welfare system are both due in the Autumn¹.

More on how the system works is in our benefits hub.