The DVLA is set to seize drivers' physical licences from October as it begins working with the Department for Work and Pensions (DWP) on its benefits crackdown. The DWP will collaborate closely with the DVLA to clamp down on benefit fraud within the welfare system. Under new powers, the DWP can strip licences and revoke permits of drivers who owe them more than £1,000.
Immediate suspensions and licence surrender
Under the powers, the DWP will have the ability to hand down immediate suspensions. The DWP will also have the power to compel benefits claimants to hand over their licence to be held by the government. The DWP says claimants may be required to give their physical driving licence documents to the court following an immediate disqualification order.
Even where the physical licence is not initially provided, DVLA records will be immediately updated to show the individual is disqualified from driving, and their licence revoked. DVLA may require licence documentation to be returned to it in accordance with relevant legislation, where this has not been produced to the court or police.
Police access and licence handling
The police will have access to the DVLA records via the Law Enforcement Data Service (LEDS) and will be aware that someone is disqualified, even if they retain their physical licence. Where an individual has been required to give their licence to the court, the police or another public body, it will be returned to DVLA who may hold or destroy the licence in accordance with normal practice.
DWP will not receive or hold an individual's driving licence. Enforcement of the powers will be gradually rolled out from October 2026, the DWP previously confirmed.
Government's promise to protect taxpayers
Cabinet Office Minister Satvir Kaur said: "Fraud against the public sector and unrecovered debt deny our vital frontline services of the funding they deserve. Under these new powers in the PAFER Act, this Government will deliver on its promise to protect hardworking taxpayers and clamp down on those who try to cheat the system."
