From October, the Department for Work and Pensions (DWP) will gain new powers to suspend the driving licences of suspected benefits cheats, but four groups of claimants are protected from this measure. The enhanced powers, part of the Public Authorities Fraud Error and Recovery (PAFER) Act, were introduced under Sir Keir Starmer and will come into effect under the new Labour Prime Minister Andy Burnham.
Who is exempt from the driving licence ban?
The DWP has confirmed that the following groups will be safeguarded from licence cancellations:
- People with debts under £1,000
- People with an essential need for their licence
- Couriers
- People who need cars for caring responsibilities
Any ban imposed is initially suspended as long as repayment terms are met, the DWP added, in a move to reassure claimants.
How the new powers work
Under the PAFER Act, courts can impose a driving ban on individuals who have not paid recoverable amounts. The Act states that a “driving licence” means a licence to drive a motor vehicle granted under Part 3 of the Road Traffic Act 1988. Where the amount still to be recovered is at least £1,000, the Secretary of State may apply to the court for a suspended DWP disqualification order. This order sets out repayment terms and warns that failure to comply could result in an immediate disqualification order.
The court must make a suspended DWP disqualification order if it is satisfied, on the balance of probabilities, that the liable person has, without reasonable excuse, not paid the recoverable amount. The Secretary of State may apply for a second or subsequent suspended order even if the amount still to be recovered has fallen below £1,000.
Consultation and context
The Codes of Practice for these powers were subject to public consultation and are published on the DWP website. The measures are part of wider DWP plans to crack down on fraudsters who exploit the benefits system and steal from those who most need help.
