The Department for Work and Pensions (DWP) is sending warning letters to individuals with outstanding debts ahead of new powers that will allow officials to raid bank accounts of benefits cheats from October. The measures, granted under the Public Authorities (Fraud, Error and Recovery) Act 2025, also known as PAFER powers, are designed to recoup owed cash.
Labour minister addresses new debt recovery powers
Labour Party minister Andrew Western, who works in the DWP alongside Pat McFadden, addressed the new powers in the House of Commons after being questioned by James McMurdock. Western explained that the powers are intended to increase fairness and improve the efficiency of debt recovery from individuals who are no longer receiving benefits or are not in suitable PAYE employment.
Western stated: "New debt recovery powers agreed by Parliament in the Public Authorities (Fraud, Error and Recovery) Act are designed to increase fairness and to more effectively and efficiently be able to recover debt from individuals who are not in receipt of benefit or suitable PAYE employment." He added that the powers will encourage voluntary repayment and ensure recourse for those who have the means to repay but do not.
Last resort measures include driving disqualification
In the most serious cases, where the outstanding debt balance is at least £1,000, the Debt Recovery Measure allows the DWP to apply to the Magistrates court for consideration of a Disqualification from Driving Order. Western described these powers as a "last resort" when all other attempts to secure repayment, including recovery directly from a bank account, have not been possible.
Western clarified: "A court cannot grant a disquisition order where the individual has an essential need to drive, and initially any disqualification will be suspended providing the individual maintains the repayment terms set by the court."
Impact assessments published online
As part of the passage of the Public Authorities (Fraud, Error and Recovery) Act, detailed Impact Assessments were published and are available online. Western noted: "The Impact Assessment contains our estimate of the scale of our debtors and debt stock as well as the cost of implementing the measures along with potential savings." He added that the department expects to publish data relating to these measures through usual channels, such as the Annual Report and Accounts.
