From 2026, DWP bank checks hit 3 benefits, spare State Pension: will your £1,085 survive winter?

Millions are bracing for tighter benefit policing, with new data-matching powers set to reach into people’s bank accounts.

The government plans a fraud clampdown from 2026 that will let the Department for Work and Pensions request information from banks to verify claims. One benefit will sit outside the net, while three major payments will face extra scrutiny.

What is changing from 2026

Ministers are preparing new powers under the Public Authorities (Fraud, Error and Recovery) Bill. The measures aim to reduce incorrect payments and speed up the detection of fraud or error. The DWP will use “Eligibility Verification Notices” to ask financial firms for limited information that helps confirm whether a claimant meets the rules of a benefit.

The DWP intends to deploy targeted bank checks to spot red flags and verify eligibility, starting in 2026.

Officials say the approach will focus resources where the risk of error or fraud is highest. The department also stresses that automated flags will not decide outcomes on their own.

Which benefits are in the frame

The DWP has set out a phased rollout. Three benefits are prioritised at the start, with scope to add others later if Parliament agrees.

• Universal Credit (UC) – identified as having a high level of incorrect payments.
• Pension Credit (PC) – included due to complex eligibility and links to other support.
• Employment and Support Allowance (ESA) – also within the first wave of checks.
• Housing Benefit – not in the first wave, but claims may be reviewed if linked benefits change.
• State Pension – explicitly excluded from these new data powers.

The State Pension is explicitly excluded from the power and cannot be added by future regulations.

The DWP says information gathered for one benefit may be used to review entitlement to another where the rules overlap. If a review finds someone no longer qualifies for Pension Credit, for instance, the department may reassess linked Housing Benefit too.

Why pensioners are exempt

State Pension recipients will not be subject to the new bank checks. The legislation carves out State Pension so that the power does not apply and cannot be extended to it later by secondary legislation. That draws a clear line between retirement income rights and means-tested benefits, reflecting the different design and purpose of the payments.

That said, Pension Credit remains within scope. People who claim Pension Credit should keep records up to date, as a Pension Credit decision can unlock or withdraw other help, such as Housing Benefit or Council Tax Reduction.

How the checks will work

Eligibility Verification Notices

An Eligibility Verification Notice (EVN) is a formal request for information. The DWP can send an EVN to a bank or building society when it needs to validate a detail that affects entitlement, such as savings levels or regular income that could affect a means-tested award. The department says it will use EVNs proportionately and target them where risk indicators appear.

Human oversight and use of data

Data signals alone will not lead to sanctions or stoppages. Caseworkers will review the material and make decisions. The DWP states that a person will always be involved before any change to awards or eligibility is made.

A human will always take the final decision on eligibility or award changes triggered by data checks.

If one benefit changes as a result of an EVN, the department may look again at other connected awards. That can mean either more support or less, depending on what the evidence shows.

Concerns about fairness and privacy

The Regulatory Policy Committee, which reviews government impact assessments, has warned that the bill’s analysis downplays the effect on people with the lowest incomes. It also notes that the financial impact on banks of facilitating any direct recoveries from accounts has not been quantified in the paperwork.

Legislative reviewers say the assessment understates risks for the poorest and does not spell out bank admin costs.

Campaigners expect debate over safeguards, proportionality and how data will be protected. Ministers argue the measures will save taxpayers millions and reduce wrongful payments, freeing funds for those who qualify.

What this could mean for your payments

If you claim Universal Credit, Pension Credit or ESA, you should expect tighter eligibility checks from 2026. The department is likely to focus on savings, undeclared income, and changes in household circumstances that can alter awards. If you receive only the State Pension, you are outside the scope of these bank account checks, although you should still report changes that affect any means-tested top-ups.

The changes arrive as some households could receive up to £1,085 in payments in the run-up to Christmas, depending on their circumstances and entitlements. These seasonal sums are unaffected by the new powers, which have not yet begun. But people who rely on means-tested support should keep their details accurate to avoid overpayments and later recovery.

• Report changes promptly, including savings, earnings, partners moving in or out, and address changes.
• Keep bank statements and evidence of income and savings in case you are asked to provide them.
• Respond to any Eligibility Verification Notice by the deadline stated in the letter.
• If you think a decision is wrong, request a mandatory reconsideration and, if needed, appeal to a tribunal.
• Seek independent welfare advice if you receive a complex request or face deductions you do not understand.

Examples and scenarios

If you claim Universal Credit

UC is means-tested. Savings can reduce your monthly award, and large capital can disqualify you. If a bank check suggests capital above the limit, the DWP may ask for statements to verify the balance and its source. If you recently received a one-off payment, explain it and provide evidence.

If you receive Pension Credit

Pension Credit tops up retirement income. Small amounts of savings can affect the calculation through assumed income rules, while larger sums may end entitlement. If a check suggests you no longer qualify, the DWP can look again at linked support, including Housing Benefit. Engage early, as providing evidence quickly can prevent unnecessary disruption.

If you only receive the State Pension

You are not subject to bank checks under these new powers. You should still tell the DWP about relevant changes for any other benefits. If you are on a low income, check whether you might qualify for Pension Credit, which can open the door to extra help with housing and council tax.

Key points at a glance

• Start date: new bank check powers planned from 2026.
• In scope first: Universal Credit, Pension Credit, Employment and Support Allowance.
• Explicitly out of scope: State Pension, and it cannot be added by regulations.
• Linked reviews: a change to one benefit can trigger a review of related awards.
• Decision-making: a human will make any decision affecting payments or eligibility.
• Oversight: an independent watchdog has questioned the impact assessment on vulnerable people.

Practical tips to stay onside

Set a reminder to review your claim details every month. Keep digital copies of payslips, pension statements, and bank statements. If you receive rental income, store tenancy agreements and rent schedules. If you are gifted money, keep a note of who sent it and why. These records make any EVN easier to deal with.

Running a quick entitlement check can help. For UC, note that rising savings can taper awards before cutting them off altogether. For Pension Credit, small income changes can shift entitlement, so verify your figures. If you split finances with a partner or start cohabiting, update the DWP immediately, as household composition often changes entitlement.

Keep clean records, report changes early, and answer any DWP queries on time to avoid avoidable debt.