The Department for Work and Pensions is introducing significant new powers to clamp down on benefit fraud, with measures that include bank account checks for claimants and direct deductions from accounts to recover debts, according to reports. Laws enabling these powers were enacted last year, empowering investigators to request banking information for individuals receiving certain benefits. Officials will contact UK banking providers to review records for accounts linked to specific benefits, flagging any that may not be eligible for payments. Additionally, the legislation grants authority to directly withdraw funds from a person's bank account if they owe the DWP a debt and refuse repayment.
Eligibility checks will initially target those on Universal Credit, Pension Credit, and Employment and Support Allowance. This scope could be extended to other benefits in the future.
The DWP has confirmed that these powers have not yet been put into use, as some key steps must be completed first. A 'test and learn approach' to trial the bank account checks is due to start this year. Prior to this, the DWP is currently developing codes of practice for the use of the new powers. Final versions of these codes will be laid before parliament before any new powers can be utilized.
The purpose of the direct deduction powers is to target individuals who have left the benefits system and owe money to the DWP. Previously, the DWP could only recover funds through a person's PAYE earnings or deductions from their benefits. If the DWP intends to use this power, they will contact the person to provide time for dispute. Officials will also request three months of bank statements to ensure the person has sufficient funds available.
Expanded fraud investigation powers allow investigators to request information from third parties when looking into a case. Previously, they could only order people to hand over information from a restricted list. Now, they can contact any third party associated with a person suspected of fraud to mandate disclosure of necessary details.
The powers became law in December 2025. The implementation details, including the exact start date for testing and potential benefit expansions, remain under development.