UPDATE: |DWP set Eligibility Verification start date – enhancing fraud prevention measures News

The Department for Work and Pensions announced ‘the biggest fraud crackdown in a generation’ earlier this year and new details have emerged on how the powers will be implemented

Earlier this year, the UK Government declared what it called ‘the biggest fraud crackdown in a generation’ to minimise the amount of money being lost in the welfare system.

The Department for Work and Pensions (DWP) predicts that the Public Authorities (Fraud, Error and Recovery) Bill will help save taxpayers £1.5 billion over the next five years.

The new measures include driving bans of up to two years for benefit cheats who repeatedly fail to repay money they owe, powers allowing the DWP to recover money directly from fraudsters’ bank accounts, and Eligibility Verification, which will enable third-party organisations such as banks to flag potential fraudulent benefit claims.

In a series of 11 new factsheets released by the DWP, providing further insight into how the new measures will be safely implemented and monitored, it confirms that the UK Government will start implementing the proposed measures from 2026.

The factsheets also provide information on how safeguards, reporting mechanisms and oversight will function to ensure the “appropriate, proportionate, and effective use of the powers”.

According to guidance on GOV.UK: “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 is set to expand its reach by obtaining information from additional third-party organisations, including airlines, to verify if individuals are claiming benefits while abroad, which could breach eligibility rules, reports the Daily Record.

Eligibility Verification Measure

It’s crucial to note that the DWP won’t have direct access to the bank accounts of millions receiving means-tested benefits like Universal Credit, Pension Credit, and Employment and Support Allowance.

Instead, the DWP will collaborate with banks to pinpoint claimants who might not meet the means-tested benefits criteria, such as the £16,000 income limit for Universal Credit. The aim is to gather relevant data to investigate potential overpayments or fraud cases.

The legislation restricts banks and other financial institutions to sharing only limited data with the DWP, explicitly excluding transaction details. This ensures that the DWP cannot monitor how benefit recipients spend their funds.

Moreover, the factsheet highlights that oversharing by banks, such as providing transaction data, could result in penalties.

Furthermore, it clarifies: “Any information shared through the Eligibility Verification Measure will not be shared on the presumption or suspicion that anyone is guilty of any offence.”