🚨 Attention, benefit claimants! 🚨
Starting February 27, 2026, the Department for Work and Pensions (DWP) will have new powers when it comes to checking bank accounts for those receiving certain benefits. Thanks to the recently passed Public Authorities (Fraud, Error and Recovery) Act, these changes aim to tackle benefit fraud and errors that cost the taxpayer a whopping £9.5 billion each year.
Here’s what you need to know:
🔍 Who’s Affected?
If you’re claiming Universal Credit, Pension Credit, or Employment and Support Allowance (ESA), this applies to all your accounts.
🏦 What Will Banks Do?
Banks and building societies will be required to report if you have significant savings (like more than £16,000) or if you, as a pension claimant, spend over four weeks abroad.
💷 What Could Happen?
If discrepancies are found, the DWP may launch an investigation. They can reduce your benefits, ask for repayments, or directly deduct funds from your bank account. You’ll receive a notice from the DWP if funds are withdrawn, giving you a month to raise any objections.
⚖️ Legal Consequences:
For debts over £1,000 that go unpaid, the DWP could apply for a court order to suspend your driving licence. There will be an independent watchdog ensuring fairness, and you’ll have a right to challenge decisions.
These measures promise to help ensure that benefits go to those who truly need them, while cracking down on fraudulent claims.
Stay informed and make sure to check in with your bank if you have any questions or concerns. Feel free to share this important update with anyone who might be affected! 🤝💡