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New DWP powers to check the bank account details of benefit claimants could be expanded. Under a new law going through Parliament, investigators would be able to check the bank account details of people on certain benefits. The purpose of the checks is to make sure those claiming benefits are eligible for their payments. The powers would be used to verify the details of those who claim Universal Credit , Employment and Support Allowance and Pension Credit. But the legislation mentions that this could be extended to other benefits. Experts have also said it could be a good idea to check other financial details of claimants. Martin Hartley is group CCO of business consultancy emagine and is also a member of the Bank of England decision maker panel. He said: "The eligibility verification measure is an important step in ensuring support reaches those who genuinely need it. "Looking ahead, it could reasonably be extended to other means-tested benefits such as Housing Benefit, Child Tax Credit, and Income Support. Expanding the scope of verification would help maintain the integrity of the benefits system and reduce the risk of overpayments." Mr Hartley said there are other elements of people's finances that should be looked at. He said: "In addition to confirming basic eligibility, there are several aspects of a claimant’s financial situation that should be checked regularly. "These include household income from all sources, such as savings and assets, outstanding debts, and other benefits or allowances they may be receiving. More rigorous testing reduces the number of people that claim benefits that do not need them." He said there should also be checks of people's employment and health situation, to look for any changes to personal circumstances that would impact your payments. The bill also includes powers to directly take funds from a person's bank account where they owe the DWP money, but are refusing to pay up. In these instances, the DWP would contact the person to tell them they will be taking the amount. Investigators would also request at least three months of bank statements, to be sure the person has the funds available. When Labour announced the bill in January 2025, former secretary of state for work and pensions , Liz Kendall, said: "We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money. "This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely. "People need to have confidence the Government is opening all available doors to tackle fraud and eliminate waste, as we continue the most ambitious programme for government in a generation – with a laser-like focus on outcomes which will make the biggest difference to their lives as part of our Plan for Change."
