The Department for Work and Pensions (DWP) will begin withdrawing cash directly from bank accounts under new powers starting October 1. The controversial powers will force banks to hand over information about accounts, with rules applying to people on certain benefits and some pensioners.
New Powers Target Benefit Fraud
This action is part of a major Government crackdown on benefit fraud. The crackdown will focus on households claiming Universal Credit, Employment and Support Allowance (ESA), and Pension Credit. That means some pensioners will also come under the focus of the DWP.
Officials will be looking for details such as how much savings benefit claimants have. This is to check whether someone qualifies for benefits they say they do. Pension Credit is on the list despite the fact the benefit is massively underclaimed. It is likely more cases of fraud will relate to main benefits like Universal Credit.
Driving Licence Suspensions and Debt Repayment
The department will also have the power to suspend driving licences of benefit claimants. The DWP has urged people in debt to make contact before October. Direct action, such as bank withdrawals, will then be made.
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."
