Government unleashes £1.2 billion crackdown as part of anti-fraud drive

26 Oct 2026 03:17 PM

Benefits cheats have been put on notice with tough new anti-fraud measures used for the first time as part of a drive to save billions of pounds for the taxpayer.

• First use of new anti-fraud powers to help identify claimants with undeclared savings or extended time spent overseas, saving taxpayers £1.2 billion by 2030/31.
• Banks will be asked to flag accounts where data suggests certain benefit eligibility rules may no longer be met.
• Part of the Government’s wider plan to save £14.6 billion by tackling fraud, error and debt, alongside broader moves to put work and opportunity at the heart of a sustainable welfare system.

The Department for Work and Pensions has issued its first Eligibility Verification Notice, requiring banks to share information to help the department check someone’s benefit entitlement.

The Eligibility Verification Measure (EVM) – expected to save taxpayers £1.2 billion by 2030/31 – will ask banks to help identify claimants who may have undeclared savings or remain abroad longer than benefit rules allow, two major drivers of fraud and error.

The measures will help detect fraud, reduce incorrect payments and protect taxpayers’ money. They have been introduced as part of the Public Authorities (Fraud, Error and Recovery) Act 2025 and contribute to the Government’s wider drive to save the taxpayer £14.6 billion over the next five years.

They will also help identify incorrect payments sooner, ensuring people receive the support they are entitled to while reducing the risk of overpayments building up and claimants falling into avoidable debt.

The move marks a significant step forward in the Government’s drive to create a fairer welfare system by cracking down on fraud, reducing costly error and ensuring support is targeted at those who genuinely need it.

A wider package of reforms, set to be unveiled at the Budget, is expected to save the taxpayer a further £1.4 billion between 2027 and 2032. Measures include the deployment of 2000 additional anti-fraud specialists into Jobcentres nationwide, as well as tougher checks on Universal Credit claims abroad to tackle fraudsters who fail to report they have left the country to keep payments flowing. More broadly, the Budget will be built on fiscal stability, giving breathing space on the cost of living and the cost of doing business, and offering fresh hope for the future.

The government will also deliver further sustainable welfare reform following the Milburn and Timms reviews – both due in the Autumn - with the Government already acting to reform the social security system by investing record funding for employment support to help disabled people and those with long-term health conditions and rebalancing Universal Credit.

Minister for Innovation, Fraud and Debt Lilian Greenwood yesterday said:

Benefit fraudsters should be looking over their shoulder. These new powers will help us crack down on those who deliberately abuse the system, while ensuring people receive the right support at the right time.

We are not interested in where people do their weekly shop or how much they’re spending on new clothes. Banks will simply be asked to identify if somebody may no longer meet the rules for the benefits they receive, allowing us to investigate further where necessary.

With £1.2 billion in savings expected by 2030/31, this is a major step forward in tackling fraud and error, protecting public money and ensuring support goes to those who genuinely need it.

The powers do not give DWP access to people’s bank accounts, transactions or spending habits.

Instead, banks are asked only to check relevant benefit receiving accounts against certain eligibility rules for benefits and flag cases where further enquiries may be required.

A flag does not indicate fraud or wrongdoing, and no decision about a person’s benefit entitlement can be made on EVM information alone.

The measure will begin with a carefully managed test-and-learn phase and remain subject to independent oversight throughout before any wider rollout.

The Eligibility Verification Measure is one of a number of powers introduced through the Public Authorities (Fraud, Error and Recovery) Act 2025, alongside strengthened debt recovery powers and new information-gathering powers to help prevent, detect and investigate fraud.

Together, the reforms form part of the Government’s wider plan to save £14.6 billion over the next five years while protecting the integrity of the welfare system and ensuring support reaches those who need it most.

It sits alongside broader Government action to bring down the benefits bill, help more people into work and create opportunity across every postcode, including through our £2.5 billion youth employment package.

Recent high-profile fraud cases include:

• Colin Hegarty who falsely claimed more than £70,000 by saying he was single and was caught out by a Facebook photo proposing to his partner.
• Bethany Elwood sentenced for £78k Universal Credit fraud after lying that she was single for over four years, despite living with her boyfriend.
• Catherine Wieland was caught ziplining in Mexico and sentenced for £23k PIP fraud.

Additional Information:

• The department may only issue an Eligibility Verification Notice to financial institutions in relation to Universal Credit, Pension Credit and Employment and Support Allowance.
• It’s estimated that fraud and error from undeclared savings and time spent abroad in relation to Universal Credit and Pension Credit cost the taxpayer £1.5 billion in 2025-26 alone.
• The Eligibility Verification Measure (EVM) has an accompanying statutory Code of Practice guidance, which sets out some of the safeguards that must be followed when exercising the powers.
• The Code of Practice was subject to public consultation and is available on GOV.UK.
• We are determined to tackle fraud and error in the system, with the 2025-26 estimate putting the overall rate at 3.2%, following the increase seen in 2020/21 .
• More on the Public Authorities (Fraud, Error and Recovery) Act 2025 here.