The Department for Work and Pensions (DWP) will acquire new powers to impose driving bans on benefit claimants starting in October 2026. These measures, introduced under the Public Authorities (Fraud, Error and Recovery) Act 2025, are designed to recover welfare debt and tackle fraud.
Driving ban conditions and exemptions
Courts can be asked to strip driving licences from persistent debt dodgers, but only when the debt is at least £1,000. Claimants can avoid a ban by contacting the DWP within four months, and staff can offer advice and support for repayment plans.
No one will 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 imposed driving ban will initially be suspended as long as repayment terms are adhered to.
Ministerial statements on the new powers
Labour Party 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.” He added: “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.”
Cabinet Office Minister Satvir Kaur commented: “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.”
Additional measures under the PAFER Act
The DWP added: “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, for example work that relies on driving, such as a courier or caring responsibilities. Any ban is initially suspended as long as repayment terms are kept to.”
Other powers under the PAFER Act, which will be operational in future, include the Eligibility Verification Measure. This will allow DWP to require limited data held by banks and financial institutions to help identify incorrect benefit payments, ensuring claimants are paid accurately and allowing errors to be found and resolved sooner.
