The UK Department for Work & Pensions (DWP) has initiated a strategic procurement process to identify a supplier of open banking technology for its Universal Credit (UC) system. This move aims to streamline the benefits application process by enhancing the verification and sharing of bank account information, thereby reducing fraud and increasing efficiency. By adopting open banking, the DWP intends to create a more seamless and secure experience for UC claimants, ensuring faster and more accurate assessments of eligibility and financial status.
The procurement comes after a successful trial in late 2024, where UC claimants were able to securely share bank balance and transaction data online. Building on this success, the DWP now seeks a supplier that can provide the infrastructure to enable citizens to share details from all their bank accounts and verify these accounts, with the potential for expanding the service in the future. This move is expected to make the system more adaptable to the changing needs of UC claimants, while also enhancing the user experience.
The procurement process is being carried out through the Crown Commercial Service’s Open Banking Dynamic Purchasing System, which is designed to facilitate the use of open banking across the UK public sector. This will allow the DWP to work closely with the selected supplier to explore new functionalities and implement them as required, ensuring the technology evolves in line with the department’s future needs.
This initiative reflects the UK government’s ongoing commitment to modernising public services through the integration of financial technology. By leveraging open banking, the DWP aims to improve efficiency, reduce administrative burdens, and foster greater transparency within the benefits system. As the government continues to modernise its services, this procurement marks an important step towards more accessible, efficient, and secure financial services for the public.
