The Department for Work and Pensions (DWP) will, from Thursday, have new powers to strip driving licences from benefit claimants who refuse to repay debts. The measure, introduced under the Labour Party government, is designed to target individuals who have the means to pay but deliberately avoid doing so.
Under the rules, which take effect on October 1, the DWP can apply to a court for a temporary disqualification order against an individual's driving licence. This applies only as a last resort in the most serious cases where the DWP considers the person has the means to pay but is refusing, or avoiding payment, without reasonable excuse. The DWP says this includes taking action to move funds to prevent a direct deduction order (DDO), or refusing to pay altogether.
How the disqualification process works
Initially, the court must make a suspended disqualification order. This allows the individual to continue holding a driving licence, but requires them to make payments as ordered by the court. Only if the payment terms are breached, without good reason, can the DWP apply to the court to immediately disqualify the individual from driving.
The DWP advises that contacting the department early, agreeing to and maintaining an affordable payment plan, would mitigate the risk of the DWP applying for a court order to temporarily disqualify a person from driving.
Direct bank account deductions also begin
In addition, the DWP's power to recover money directly from the bank accounts of former claimants who owe them money will also begin. This applies only to people who are no longer claiming benefits or in PAYE employment and who have failed to pay back a debt to the DWP. The power allows the DWP to deduct either a single lump sum or regular amounts from a bank account without first needing to apply to a court.
The crackdown comes amid growing concern over the ballooning nature of DWP fraud and error, which is hitting the government and taxpayers hard in the pocket.
Minister defends new powers
Work and pensions minister 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.”
The measures are part of a wider government effort to reduce fraud and error within the benefits system, with the DWP emphasising that the driving licence disqualification is a last resort and that it will always seek to work with individuals to arrange repayment.
