DWP sets out how banks will flag accounts of people on certain benefits

New UK rules will require banks and other financial institutions to help the Department for Work and Pensions (DWP) verify eligibility for certain benefits, under an “Eligibility Verification Measure.” The DWP can require checks for accounts receiving Universal Credit, Pension Credit, and Employment and Support Allowance (ESA). The published final Code of Practice explains that the DWP issues an Eligibility Verification Notice (EVN) with eligibility indicators, and institutions must identify matching accounts using information they already hold. If an account is flagged, specified information may be shared to assess whether a benefit might be incorrectly paid. However, banks cannot provide transaction details or spending information, and the DWP does not gain access to accounts.