- Yes, in two ways. When it is investigating suspected fraud, DWP can require a bank to give it information about your account.3
- Under the Public Authorities (Fraud, Error and Recovery) Act 2025, which became law on 2 December 2025, DWP can also ask banks to check accounts that receive certain benefits against eligibility rules and flag the ones that match, for example savings above the Universal Credit limit.12
- With the new checks, DWP does not see your transactions or what you spend money on.12 The checks cover Universal Credit, Pension Credit and Employment and Support Allowance. The State Pension is excluded by law.1
- A flag is not a decision. A person at DWP looks at it, and no benefit decision is made on the bank data alone.1
Will your savings affect your benefits?
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What can DWP see when it investigates fraud?
Authorised DWP officers have long had legal power to require information from banks and building societies when they are investigating a benefit offence. This was extended to banks by the Social Security Fraud Act 2001 and is used for specific investigations, not as a routine check on everyone claiming.3
In an investigation, DWP can ask for statements and account details relevant to the period it is looking at. It does not need your permission to do this. Separately, DWP or the council may simply ask you to send bank statements during a review of your claim, which is routine.
What are the new eligibility checks in 2026?
The eligibility verification measure works differently from a fraud investigation. DWP sets criteria, and banks check accounts that receive a specified benefit, and linked accounts, against them. Where an account meets the criteria, the bank tells DWP the account details, the holder's name and date of birth, and how the account meets the criteria.1
Banks are not allowed to share more than that, such as transaction details, and can be penalised if they do.1 DWP says it will not access people's bank accounts or see where they spend their money.2
The power covers Universal Credit, Pension Credit and Employment and Support Allowance. Other benefits could only be added with Parliament's approval, and the State Pension is explicitly excluded.1 DWP is introducing the checks gradually with banks, under a code of practice.
Which benefits are covered by the bank checks?
The eligibility checks under the 2025 Act are limited to three benefits. Adding any other needs Parliament's approval, and the State Pension can't be added at all.1
| Universal Credit | Covered |
| Pension Credit | Covered |
| Employment and Support Allowance | Covered |
| State Pension | Excluded by law |
| Other benefits (PIP, Child Benefit and the rest) | Not covered now |
Separately from these checks, DWP can still ask a bank for information about a particular person when it is investigating suspected fraud, whichever benefit they get.3
Do the checks apply to pensioners?
Not to the State Pension: it is excluded and cannot be added.1 They can apply to Pension Credit, because Pension Credit is means-tested.
Pension Credit has no upper savings limit, but savings over £10,000 are counted as £1 a week of income for every £500.5 If your savings have grown, report it to the Pension Service so your award is right.
What should I do if I'm worried?
If you have reported your circumstances accurately, you do not need to do anything. A check simply confirms what DWP already knows.
If your savings or income have changed and you have not told DWP, report it now: through your Universal Credit journal, or to the Pension Service or ESA office. Universal Credit stops if you have more than £16,000 in savings, and savings over £6,000 reduce it.4
Keep simple records of large payments in or out, such as an inheritance, a refund or money you are holding for someone else, so you can explain them if asked. If you receive a letter about an overpayment or an investigation, get free advice from Citizens Advice or a welfare rights adviser before you reply.
Deliberate deprivation and cash withdrawals
DWP looks closely at large sums leaving an account shortly before or during a claim, such as cash withdrawals, gifts or transfers to family. If it decides money was given away to get or keep benefit, it can treat you as still having it.
There is often a good explanation, such as paying off a debt, a funeral or essential repairs. Keep receipts and records, because evidence of why the money was spent is what matters.