The Department for Work and Pensions (DWP) is poised to acquire new powers enabling it to scrutinise the bank accounts of those claiming benefits. The proposed rules would permit the DWP to more closely monitor financial transactions, with the aim of combating fraud and preventing benefit overpayments.

These new powers are planned to be introduced from April 2026 under the Public Authorities (Fraud Error and Recovery) Bill, with full implementation anticipated between 2029 and 2031. This legislation will bolster the DWP's capacity to tackle social security fraud and errors by granting the department enhanced authority to investigate, prevent, and recoup funds owed to taxpayers.

Rather than directly inspecting all benefit claimants' bank accounts, banks will be tasked with reporting accou

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