The Department for Work and Pensions (DWP) is planning a rule change that could see Universal Credit claimants who owe at least £1,000 face a driving ban. Under the proposed clampdown, eight million claimants could be disqualified from driving for up to two years if they refuse all opportunities to repay the money they owe.
How the rule would work
The Labour Party government states that the DWP will be able to apply to court with justification to suspend fraudsters from driving, provided the debt is £1,000 or more and frequent requests to repay have been ignored.
Reactions from advocacy groups
A spokesperson from Single Mothers Assistance said: "These documentation demands create impossible barriers for families already stretched to breaking point. When a single parent working multiple jobs is asked to provide 73 pieces of information, often at short notice, the risk of missing a deadline or making an error becomes almost inevitable. The £1,000 penalty threshold represents weeks of food and essentials for families where 43% already live in poverty."
Advice from Citizens Advice
Citizens Advice adds: "If you have received an overpayment of benefit, it does not always mean that you will be suspected or be guilty of benefit fraud if you were unaware of what you were doing. However, the benefit office might take action to recover the overpayment."
Government's position
Former DWP boss and Secretary of State for Work and Pensions, Liz Kendall, said: "We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers' money. This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely."
What to do if you receive an overpayment
Citizens Advice further advises: "If you do not get full written reasons, you should ask for them. You can also contact the benefit office and ask them to explain their decision and to tell them any information that you think will show you have not been overpaid a benefit. This might sort out the problem. If it does not, you can dispute the overpayment if you do not agree with it. You should only do this if you can show evidence to prove why you think you have not been overpaid a benefit."
