The Department for Work and Pensions (DWP) has been granted new powers to remove driving licences from benefit claimants as part of a tough crackdown on fraud, aiming to save billions of pounds. Officials can now go further than ever before, including snooping on bank accounts, making direct withdrawals, and revoking driving licences.
New Powers to Claw Back Debts
The DWP said: "Previously, the DWP had few options to pursue people who were no longer claiming benefits or in PAYE employment, meaning some who could afford to repay were simply choosing not to. That loophole is now closed." Courts can only impose a driving ban where the debt is at least £1,000, and no one can be disqualified if they have an essential need for their licence, such as for work that relies on driving, like a courier or caring responsibilities. Any ban is initially suspended as long as repayment terms are kept to.
Focus on Universal Credit and Other Benefits
The crackdown will initially focus on Universal Credit, Pension Credit, and Employment and Support Allowance. Work and Pensions Minister for Transformation Andrew Western said: "Hardworking taxpayers deserve a system that pursues those who deliberately dodge their debts, and that is exactly what these new powers deliver. To anyone with an outstanding debt - our door is open and DWP will always work with you to find an affordable way to repay. But for those who can pay and won’t - we’re going further than ever before to claw back cash and crack down on fraud."
Government's Commitment to Protect Taxpayers
Cabinet Office Minister Satvir Kaur added: "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."
