Overview
- The Public Authorities (Fraud, Error and Recovery) Act enables the DWP to issue Eligibility Verification Notices requiring banks to check specified accounts against set criteria without sharing full transaction histories.
- New direct deduction orders allow the DWP to recover benefit debts from bank accounts after notice, with any driving‑licence disqualification for persistent non‑repayment requiring court approval.
- Authorised investigators will be able to apply for search warrants to search homes and seize evidence in the most serious benefit‑fraud cases.
- The consultation on DWP Codes of Practice closes on February 27, 2026, with practical rollout of the powers expected to follow in 2026 once rules are finalised.
- Targeted case reviews are being expanded, including to Pension Credit, with claimants typically given 14 days to supply evidence or risk suspension, as the DWP cites £9.5 billion lost to fraud and error last year and a £14.6 billion savings goal to 2030/31.