Millions on low incomes face new checks as ministers promise to claw back cash. Privacy groups warn of risks. Confusion looms over who gets flagged first.
The Department for Work and Pensions has set a firm start date for new eligibility checks and bank data monitoring. The measures begin in April 2026 and will initially focus on three major benefits. Ministers say the programme will recover £1.5 billion over five years. Campaigners say the plans amount to mass financial surveillance.
What is changing and when
The measures sit within the Public Authorities (Fraud, Error and Recovery) Bill. The government says implementation will begin in 2026, using a phased “test and learn” roll-out.
Initial attention will fall on universal credit, pension credit, and employment and support allowance. These payments support millions of households. Any disruption will be felt widely.
From April 2026, the DWP will begin piloting eligibility verification and bank account checks, aiming to protect £1.5bn over five years.
Officials say the approach will remain proportionate. Guidance and codes of practice will be consulted on before the checks scale up. The DWP says data shared under these powers will not imply guilt.
How bank account checks are expected to work
The DWP will obtain limited information from banks to help spot potential fraud or error. The department says this data will feed signals, not automatic decisions. Every case flagged should receive human review.
The government insists the bank data will sit outside DWP algorithms that currently assess risk. Staff will be trained and subject to oversight and reporting duties.
- Data will be used to verify eligibility markers, not to assume wrongdoing.
- Signals may include discrepancies between declared circumstances and financial activity.
- Cases identified through bank data should be checked by a caseworker before action is taken.
Officials have not published a list of triggers. In practice, checks often focus on issues that affect entitlement. Examples include capital rules on means-tested benefits, undisclosed partners, or prolonged absence abroad. Any similar use would still need to follow the new code of practice.
Why campaigners are worried
Civil liberties and anti-poverty organisations have raised alarms. They argue the plans could normalise broad, suspicionless screening of personal finances. They fear wrongful flags will strike vulnerable groups hardest.
Groups warn of a “Horizon-style” risk, where flawed systems or unchecked assumptions lead to serious injustice for innocent people.
Disability Rights UK, Age UK, Privacy International, Child Poverty Action Group and Big Brother Watch are among those urging a rethink. They say pensioners, disabled people and carers could live with constant anxiety about scrutiny.
What the DWP says about safeguards
The department says the allegations are mistaken. It promises proportionate use of the powers and robust oversight.
The DWP says staff will be trained to high standards, data from banks will not drive automated decisions, and every fraud signal will get human scrutiny.
The department also notes that work with the Cabinet Office and industry will continue through 2026. It says codes of practice and guidance will be published and consulted on.
The timeline and what to expect
| Measure | What to expect in 2026 |
|---|---|
| Eligibility verification | Phased “test and learn” pilots, then expansion as guidance beds in |
| Bank account checks | Targeted use for universal credit, pension credit and ESA claimants first |
| Oversight and reporting | New rules for governance, transparency reports, and staff training requirements |
What this could mean for you
If you claim one of the three benefits, expect more frequent eligibility checks from 2026. Keep your details up to date. Report changes promptly. Keep records of savings, income and any changes in your household.
- Do not ignore DWP messages. Respond within deadlines to avoid payment disruption.
- Keep bank statements and evidence of capital. This helps resolve questions quickly.
- If you think a decision is wrong, request a mandatory reconsideration. You can then appeal.
- Free, independent advice is available from welfare rights services and charities.
For universal credit, capital over set thresholds can reduce entitlement. Pension credit also has rules about savings and income. If you are not sure how capital affects your award, seek advice before moving or consolidating savings.
Who is affected first
The DWP has indicated the first phase will prioritise three payments. Other benefits may follow later as the programme matures.
- Universal credit
- Pension credit
- Employment and support allowance (ESA)
Examples that may trigger questions
The government has not published a definitive list of flags. These examples illustrate common risk areas on means-tested benefits and do not confirm how 2026 checks will operate.
- A savings balance that appears to breach capital rules on a means-tested award.
- Evidence suggesting a second account not declared to the DWP.
- Activity pointing to a change of circumstances, such as long periods overseas.
- Payments that indicate possible undeclared work or a new household arrangement.
Each example would still require a caseworker to review context and evidence. The DWP says no one should be treated as guilty by default.
Key rights to remember
You can ask for an explanation of a decision. You can supply evidence that clarifies your circumstances. You can challenge the outcome through the mandatory reconsideration process. You can appeal to a tribunal if you disagree with the reconsideration.
Keep a log of telephone calls and messages. Keep copies of letters, bank statements and wage slips. If you are ill or a carer, tell the DWP. Extensions can be possible when you have good reason for delays.
What to watch next
Consultations on the code of practice will signal how broad the checks become. Look for details on data minimisation, retention periods and audit trails. These elements will influence how fair and proportionate the system feels to claimants.
Households can prepare now. Review your award, check your declared capital and income, and update any changes. If you share an account, understand how transactions may be interpreted. If you plan a long stay abroad, check how your benefit rules handle absence.
This screams Horizon 2.0. Where’s the transparency?
Practical Q: for Universal Credit, what exact capital thresholds will trigger a flag, and how are joint accounts treated if only one person claims? Also, will temporary spikes (e.g., a reimbursment) be ignored? The guidance needs to be crystal clear, not burried in PDFs.