The DWP’s new Eligibility Verification Measure (EVM) is a data-driven system introduced under the Fraud, Error and Recovery Bill to proactively detect and prevent benefit fraud. It allows the DWP to access bank data, cross-check personal details, and review claims in real time, ensuring only eligible individuals receive payments.
Key points:
- Targets fraud in Universal Credit, Pension Credit, and ESA
- Uses bank, HMRC, and travel data for verification
- Focuses on capital fraud and abroad fraud
- Involves targeted case reviews supported by 4,000 agents
- Shifts attention from Universal Credit to other benefits
- Enables open banking for faster checks
- Integrates technology and human oversight for accuracy
The EVM aims to balance fairness with fraud prevention across the UK welfare system.
What Is the DWP’s New Eligibility Verification Measure?
The Department for Work and Pensions (DWP) has implemented the Eligibility Verification Measure (EVM) as a tool to address long-standing concerns around fraud and error within the welfare system. The measure, introduced under the Fraud, Error and Recovery Bill, gives the DWP extended authority to access, review and verify information submitted by benefit claimants in real time.
At the centre of this reform is the use of modern data-sharing technology. It’s designed to verify a claimant’s eligibility before and during the course of receiving benefits. Unlike older systems that often relied on post-claim audits and claimant declarations, this system seeks to introduce a more proactive approach.
According to the official EVM factsheet published by the government, the goal is to prevent fraud before it happens rather than recover funds after the fact. The system places a particular emphasis on benefits known to be susceptible to fraud or reporting errors such as Universal Credit, Pension Credit, and Employment and Support Allowance.
The verification process will be carried out through enhanced access to external data sources such as banks, HMRC, and travel records. This will allow the DWP to spot inconsistencies in financial data, capital holdings, and even overseas transactions that may affect a person’s entitlement.
The following table outlines how EVM differs from traditional benefit checks:
| Feature | Traditional Checks | Eligibility Verification Measure |
| Timing | After claim is processed | Before and during payment |
| Data sources | Primarily self-reported | Cross-referenced with bank, HMRC, travel data |
| Fraud detection | Manual review or triggered alerts | Automated and real-time monitoring |
| Focus | Recovery from overpayments | Prevention and real-time compliance |
As someone who has been observing these changes closely, I believe this transition marks a much-needed shift in welfare policy. It’s no longer just about administering benefits efficiently; it’s about ensuring the integrity of public funds while providing fair treatment to eligible citizens.
How Does the New Verification Process Work?
The process begins at the point of application and continues throughout the duration of a claim. Claimants will now undergo more comprehensive eligibility checks through data-matching with official records. This means that even minor discrepancies can now be flagged for review, whether it’s savings that exceed a certain threshold or a long-term absence from the UK.
Bank Account Access and Open Banking
Under the new law, DWP can request financial data from banks in specific situations. Although there’s public concern about whether the DWP can access bank accounts without consent, officials clarified that data access would be limited, targeted, and necessary only in cases where eligibility is in question.
One of the mechanisms that facilitates this is open banking. It allows claimants to voluntarily share their financial data, speeding up the eligibility verification process. According to the DWP’s statement:
“These new powers enable us to obtain essential data that help confirm eligibility without relying solely on self-reported information,” a senior DWP official explained during the Work and Pensions Committee meeting.
These banking insights will particularly target:
- Undeclared savings and capital
- Large financial transactions inconsistent with declared income
- Regular income from other sources not declared
Open banking is also helping fast-track checks in urgent cases or when fraud is suspected. The system allows the DWP to see only relevant data, not the full transaction history, ensuring some level of data protection remains.
Capital Checks and Overseas Fraud Detection
Capital checks are now more rigorous. A significant cause of fraud in the benefits system stems from individuals not declaring their true savings or investments. These are now automatically compared with information from banks and investment accounts.
A common area of non-compliance is when people exceed the savings threshold but continue receiving the same level of benefit payments. The limits differ between benefit types.
| Benefit Type | Capital Limit | Impact on Benefit |
| Universal Credit | £6,000 – £16,000 | Deduction of £4.35 per £250 above £6,000 |
| Pension Credit | £10,000 | £1 income added per £500 over threshold |
Overseas fraud is also a key issue being addressed. For example, individuals are not entitled to receive benefits like Pension Credit if they spend more than four weeks abroad in most circumstances. Through access to travel logs and overseas financial activity, the DWP can now identify claimants who do not meet the residency requirements.
This expanded verification is especially useful for spotting what DWP calls “abroad fraud,” where individuals maintain a UK address on paper but reside abroad for longer than allowed.
Why Is the DWP Shifting Focus from Universal Credit to Other Benefits?
Over recent years, most of the fraud detection and verification improvements were concentrated on Universal Credit. Having established more control over that benefit area, DWP is now broadening its oversight.
Improvements in Universal Credit Oversight
The department has seen measurable improvements in fraud detection related to Universal Credit. With automated systems already flagging inconsistencies and better claimant communication, Universal Credit fraud has declined.
As DWP Permanent Secretary Peter Schofield noted during a recent committee discussion:
“We started with Universal Credit because it was the largest area of loss. Having seen improvements there, we’re now shifting focus to other areas, like Pension Credit and ESA.”
Increasing Attention on Pension Credit and ESA
The focus has turned to Pension Credit and Employment and Support Allowance because they are now emerging as significant sources of capital fraud and error.
From my point of view, this transition is necessary, but it also comes with risks. Pension Credit claimants are typically older, and many lack the digital literacy to navigate complex compliance processes. It’s crucial that this shift includes greater claimant education and clearer communication.
What concerns me most is whether this process will be equally supportive as it is investigatory. Older claimants may find the terminology and expectations difficult to interpret, especially when it comes to digital systems.
What Role Does Capital Fraud Play in Eligibility Verification?
Capital fraud remains one of the most frequent causes of incorrect benefit claims. This happens when claimants underreport their savings or investments, either by mistake or intentionally. The new verification measures aim to identify such discrepancies early.
The DWP highlighted two primary issues:
- Savings declared as lower than actual holdings
- Failure to report capital growth from stocks, bonds, or ISAs
This is especially relevant to Pension Credit, where the entitlement reduces progressively once a claimant has over £10,000 in capital.
Here’s how capital affects entitlement across benefits:
| Capital Level | Pension Credit Impact | Universal Credit Impact |
| £6,000 or less | No impact | No impact |
| £6,000 – £10,000 | N/A | £4.35 reduction per £250 over £6,000 |
| Over £10,000 | £1/week reduction per £500 | Full impact until £16,000 threshold |
The EVM model has the ability to automatically detect and calculate these deductions by cross-referencing bank data with declared figures. This ensures accurate payments without having to rely entirely on claimant honesty.
How Will These Changes Affect Benefit Claimants?
These new processes will bring about both positive outcomes and added scrutiny for claimants. Those who consistently report their information accurately will benefit from faster processing and fewer delays. However, those who are unaware of their obligations may find themselves under review without understanding why.
From what I’ve seen, DWP is aiming to make the system more efficient, but there’s still a strong need for improved claimant awareness. Many people I’ve spoken with didn’t realise that regular support from family or changes in housing arrangements could count as income or affect their eligibility.
The following are some ways these changes could impact claimants:
- Increased documentation requests during application or renewal
- Delays in payments if discrepancies are flagged
- Mandatory interviews or checks when capital exceeds thresholds
- Potential clawbacks if overpayments are discovered
What Did DWP Officials Reveal to the Work and Pensions Committee?
During the January 2024 session with the Work and Pensions Committee, DWP officials presented a transparent view of their new fraud detection strategy.
Peter Schofield explained that a key part of the strategy includes using real-time access to data from banks and HMRC. The eligibility system is no longer passive. Instead, it actively verifies whether the reported income, savings, and residency match official records.
“We’re also using access to data. Some of the things that we’re doing to drive down fraud and error in Universal Credit are also relevant to Pension Credit,” said Mr Schofield.
He further noted that abroad fraud, particularly people staying abroad longer than the four-week limit, has become easier to detect through this data-driven model.
Another important point raised was the investment in targeted case reviews, where the department has committed over £300 million for the current year. This investment supports the work of around 4,000 agents who manually review flagged claims for potential inconsistencies.
The table below shows the breakdown of investment and coverage:
| Initiative | Budget Allocation | Personnel Involved | Targeted Benefit Areas |
| Targeted Case Reviews | £300 million | 4,000 agents | Pension Credit, ESA |
| EVM Deployment | N/A | Automated + case officers | All means-tested benefits |
| Fraud Detection Team Expansion | Ongoing | Across UK regions | High-risk areas |
How Is Technology Being Used in the DWP’s Fraud Prevention Strategy?
Technology is a cornerstone of the DWP’s fraud prevention strategy. From machine learning algorithms to data-sharing APIs, the department has invested heavily in transforming its verification systems.
This modernisation allows the DWP to move away from paper-heavy manual reviews and towards digital audits that are both faster and more accurate.
Some of the core technologies include:
- Data-matching software that compares claimant declarations with financial, employment and immigration records
- Open banking systems that offer live data feeds from banks
- AI tools that analyse large data sets for suspicious trends
- Travel data monitoring that helps detect unreported trips abroad
These technologies also support a more agile response. When a claim is flagged, the system can trigger human intervention if needed, combining machine efficiency with human judgment.
I believe these updates reflect a wider government trend of using digital tools to increase efficiency. However, there must be strict data protection policies in place to ensure that claimant information is handled securely and ethically.
What Are Targeted Case Reviews and Why Are They Important?
Targeted Case Reviews (TCRs) are in-depth investigations conducted when a claim is flagged for inconsistencies. These reviews are designed not just to detect fraud but to help correct genuine mistakes and ensure ongoing compliance.
Unlike automatic data-matching, TCRs involve real human agents who review a person’s circumstances in detail. These agents reach out to claimants for clarification, supporting documents or interviews.
How Case Reviews Help Claimants
In many situations, these reviews have helped people identify mistakes in their claims and avoid future overpayments or debt. For instance, a pensioner who forgot to declare a matured bond may be informed and allowed to update the records without penalties.
TCRs also:
- Encourage claimants to stay updated about benefit rules
- Serve as early-warning mechanisms for future non-compliance
- Build transparency into the system
Investment and Resources Behind the Reviews
DWP’s decision to allocate £300 million toward this initiative is a testament to its importance. With 4,000 trained agents deployed across the country, the department aims to resolve discrepancies quickly and reduce pressure on the appeals and complaints system.
This section of the reform, in my opinion, could be one of the more effective tools—not because it catches fraud, but because it promotes accountability and helps people correct mistakes before they escalate.
Conclusion
The new Eligibility Verification Measure is a significant step in modernising the UK’s welfare system. While it’s more intrusive than past systems, it aims to tackle genuine problems like capital and abroad fraud.
In my view, this system will benefit both taxpayers and honest claimants if implemented with empathy and proper communication. It’s not just about detecting fraud—it’s about building trust through smarter systems and fair checks.
Frequently Asked Questions
What is the Eligibility Verification Measure (EVM) used by DWP?
EVM is a new data-driven system that verifies claimant eligibility through bank access, data sharing, and real-time financial checks.
Can the DWP really access my bank account without permission?
In most cases, permission is needed through open banking. However, under the new law, they can request data from banks in certain circumstances.
What happens if I forget to report my savings or travel abroad?
It could lead to overpayments and a review of your claim. Consistent non-reporting may trigger investigations or penalties.
How will the DWP contact me if they suspect a fraudulent claim?
They usually send letters or request additional documentation. Claimants have the right to respond and appeal decisions.
Does EVM apply to both Universal Credit and Pension Credit?
Yes. Initially focused on Universal Credit, EVM is now being used for Pension Credit and ESA too.
Will the new rules reduce the number of benefit claimants?
Not directly. It aims to ensure that only eligible individuals receive payments by preventing fraudulent or mistaken claims.
Are there any support resources for claimants facing reviews?
Yes. Citizens Advice, Age UK, and welfare rights organisations can help claimants understand and respond to DWP checks.
