Top News

Earlier this year the UK Government unveiled 'the biggest fraud crackdown in a generation' to cut the amount of money being lost within the welfare system. The Department for Work and Pensions (DWP) estimates the Public Authorities (Fraud, Error and Recovery) Bill will help save the taxpayer £1.5 billion over the next five years.

Fresh measures include driving bans of up to two years for benefit cheats who repeatedly fail to pay back money they owe, powers enabling the DWP to recover money directly from fraudsters' bank accounts and Eligibility Verification, which will allow third-party organisations such as banks to flag potential fraudulent benefit claims. In a series of 11 new factsheets published by the DWP, providing more insight into how the new measures will operate safely and be monitored, it confirms the UK Government will begin implementing the proposed measures from April 2026.

The factsheets also include information on how safeguards, reporting mechanisms and oversight will work to ensure the "appropriate, proportionate, and effective use of the powers". The guidance on GOV.UK states: "The Government will begin implementing the Bill measures from 2026.

"For the Eligibility Verification Measure, the Government will implement a 'test and learn' approach to ensure the new powers to tackle public sector fraud are being used proportionally and effectively. DWP and the Cabinet Office will continue to work with industry to implement the new measures, consult stakeholders on Codes of Practice and publish guidance."

The DWP will also have the ability to gather information from more third-party organisations such as airlines to verify if individuals are claiming benefits from abroad, potentially breaching eligibility rules, reports the Daily Record.

It's crucial to understand that the DWP will not have direct access to the bank accounts of millions of people on means-tested benefits including Universal Credit, Pension Credit and Employment and Support Allowance. The DWP will collaborate with banks to identify individuals who may have exceeded the eligibility criteria for means-tested benefits, such as the £16,000 income threshold for Universal Credit - and utilise that information to then investigate that claimant to prevent potential overpayments and possible cases of fraud.

The legislation only permits banks and other financial institutions to share limited data and prohibits the sharing of transaction data, which means the DWP will not be privy to how people on benefits spend their money.

Indeed, the factsheet clarifies how banks and other financial institutions could face a penalty for oversharing information, such as transaction details.

It further states: "Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence."