The Department for Work and Pensions (DWP) will introduce tougher rules from October, giving officials new powers to check bank account details and withdraw cash directly from claimants of Universal Credit, Pension Credit, and Employment and Support Allowance (ESA).
Officials have already begun writing to some claimants, warning them of the changes and urging households with debts to get in touch. The crackdown is aimed at stopping benefit fraud and recovering outstanding debts.
New Powers to Check Bank Accounts and Withdraw Cash
Under the new rules, DWP will be able to check details such as savings and other forms of income to verify whether someone qualifies for benefits they claim. Banks will be forced to comply with requests to hand over account information.
Officials may withdraw cash where there is suspicion of fraud or wrongful payments. They will also have powers to suspend driving licences as part of the crackdown.
Affected households have two months to get in touch before direct action starts from October. Ministers say the new powers will flag up cases where there are errors much sooner.
Government Encourages Engagement to Repay Debts
The Government wants to encourage as many people as possible to engage with them, hoping the new powers will help with that. 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."
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."
Impact on Claimants and Next Steps
To anyone with an outstanding debt, Western added: "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 new powers will be focused on Universal Credit, Pension Credit, and Employment and Support Allowance (ESA). Claimants who owe money are urged to contact the DWP before the October deadline to arrange repayment and avoid direct action.
