The Department for Work and Pensions (DWP) is set to gain new powers to scrutinise the bank accounts of benefit claimants. The proposed regulations would allow the DWP to monitor financial transactions more closely in an effort to tackle fraud and prevent overpayment of benefits.
These new powers are due to be introduced starting from April 2026 under the Public Authorities (Fraud Error and Recovery) Bill, with a full rollout expected to be completed between 2029 and 2031. This legislation will enhance the DWP's ability to combat social security fraud and errors by granting the department increased authority to investigate, prevent, and reclaim funds owed to taxpayers.
Rather than conducting a direct check on all benefit claimants' bank accounts, banks will be able to report accounts