UK Government Launches Bank Checks to Combat Benefit Fraud

The United Kingdom government has initiated new anti-fraud powers that require banks to assist in identifying benefit claimants who may have undeclared savings or have been abroad longer than allowed by benefit regulations. This measure, known as the Eligibility Verification Measure (EVM), is expected to save taxpayers £1.2 billion by the fiscal year 2030/31.

The Department for Work and Pensions announced this in a statement, revealing that the first Eligibility Verification Notice had been issued to a financial institution. The EVM was introduced under the Public Authorities (Fraud, Error and Recovery) Act 2025 and is part of a broader government strategy to save £14.6 billion over five years by addressing fraud, error, and debt.

Minister for Innovation, Fraud and Debt, Lilian Greenwood, stated that these new powers would help combat benefit fraud while ensuring that genuine claimants receive appropriate support. The measure will not grant access to claimants’ bank accounts or spending habits and will begin with a test-and-learn phase.