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Universal Credit bank checks - the DWP power sparking a fresh backlash
The petition has more than 1,300 signatures and warns the checks could expose personal financial data while the DWP says they may identify 50,000 to 100,000 overpayments a year.
Fionnuala Donnelly has launched a petition calling on Parliament to reconsider powers allowing the DWP to require banks to conduct checks linked to benefit eligibility. It has attracted more than 1,300 signatures and remains open until September 25, 2026.
The new powers form part of the Public Authorities Bill, which intends to tackle benefit Fraud and incorrect payments by flagging accounts that match specific eligibility indicators.
Officials are introducing the system gradually in a "test and learn environment" to establish proper processes. The Department says the measure is not designed to provide a detailed list of claimant spending, despite fears about "bank spying."
A flag from a bank will not automatically stop benefits, as the Department says a human will always be involved in any decision affecting awards. Further enquiries are handled as they are currently.
The petition argues the move sets a dangerous precedent and raises GDPR concerns regarding personal information mishandling. If it reaches 100,000 signatures, the petition will be considered for debate in Parliament.