DWP to Review Five Major Benefits for Fraud and Error in 2026/27

The Department for Work and Pensions has confirmed that five major benefits will be examined for fraud and error during the 2026/27 financial year. Universal Credit, Housing Benefit for pension-age claimants, Pension Credit, the state pension and Personal Independence Payment are included in the department’s latest review programme.

The results of the assessment are expected to be published in May 2027. The announcement follows publication of the department’s Fraud and Error in the Benefit System report for the year ending April 2026. According to the figures, Universal Credit accounted for the largest share of overpayments.

The department estimated that £9.5 billion in Universal Credit payments had been overpaid, representing 10.5 per cent of total spending on the benefit. By comparison, the state pension recorded the lowest overpayment rate at 0.2 per cent, or £230 million.

Labour has granted the DWP expanded powers to examine bank account information as part of efforts to address benefit fraud and payment errors. Under the system, the department can issue notices to banks and financial institutions requiring specific customer information.

Financial institutions that receive such notices are legally required to comply. The measures have drawn criticism from campaign organisations that cite privacy concerns. One group described the regime as "Orwellian" and "dystopian".

The DWP has published guidance detailing the exact information that financial institutions may be required to provide. This includes account sort code, account number, the name of the account holder and their date of birth. Banks may also be asked to supply evidence on whether an account meets eligibility indicators, such as savings exceeding a specified threshold or records of the account being accessed abroad for consecutive periods.

The powers are particularly relevant for Universal Credit, which has an upper savings threshold of £16,000. Banks could be instructed to identify accounts holding balances above that level where eligibility concerns arise. The department said the published guidance was intended to provide greater clarity about the scope of the new powers.

A disability charity has stated that fraudulent claims remain uncommon among recipients of disability-related benefits. PIP currently provides between £121.20 and £778.40 every four weeks to more than 3.9 million claimants across England and Wales.