Overview
- The checks will follow a public consultation that runs until February 27, with deployment beginning once the Code of Practice is updated.
- Initial scope covers Universal Credit, Pension Credit and Employment and Support Allowance, with the legislation allowing other benefits to be added later.
- Banks and building societies will be required to flag accounts using eligibility indicators, such as savings over £16,000 for Universal Credit or extended stays abroad for Pension Credit.
- DWP can reduce benefits, demand repayments, request statements and recover money directly from accounts, with written notice and a one‑month window to object; cases will be reviewed by officers under independent oversight.
- The DWP projects savings of about £500 million a year once fully rolled out and expects 50,000 to 100,000 overpayments to be identified annually, with the OBR validating up to £940 million in savings over five years.