DWP could check your bank account under Universal Credit clampdown as payments to be slashed – what to know
The UK government is making significant changes to the Universal Credit system, introducing stricter checks on people’s savings. Under the new rules, officials will be able to look into the bank accounts of benefit claimants who have £6,000 or more saved up. These changes come as part of wider efforts to reduce spending on welfare and crack down on fraud.
Currently, people with more than £16,000 in savings aren’t eligible for Universal Credit at all. But the new system will reduce payments for those with savings between £6,000 and £16,000. For every £250 someone has above the £6,000 threshold, their monthly benefit will be cut by £4.35. Even smaller amounts will face the same deduction—so if someone has £6,300 saved, they’ll lose £8.70 from their monthly payment.
To enforce these rules, the government is giving the Department for Work and Pensions (DWP) new powers to check bank accounts. Banks will have to share basic information about accounts that receive benefit payments, including names, dates of birth, and account details. The DWP says this isn’t about spying on people’s spending but about making sure benefits go only to those who qualify. No decisions will be made based on this information alone—it will just flag cases that need a closer look.
Work and Pensions Secretary Liz Kendall says the changes will help stop fraud and protect taxpayers’ money. In serious cases, people caught cheating the system could face harsh penalties, including losing their driving licence. The government estimates these measures could save millions by ensuring benefits are paid correctly.
However, some worry that the rules could hurt people who are trying to save small amounts while still needing financial support. The changes also affect other benefits like Jobseeker’s Allowance and Housing Benefit, where savings over £6,000 already lead to smaller payments.
These new checks are part of a bigger plan to reform welfare, with the government saying it wants to help people into work while stopping abuse of the system. But critics argue that the focus on cutting costs could make life harder for those who rely on benefits to get by. The debate continues over how to balance fairness, support for those in need, and protecting public funds.
