The Department for Work and Pensions (DWP) has been handed controversial new powers to suspend driving licences belonging to state pensioners aged over 65 as part of a major crackdown on benefit fraud.
New Powers to Tackle Benefit Fraud
Under the tough new rules, DWP officials can temporarily cancel the driving licences of Pension Credit claimants who fail to engage with them. The move is aimed at saving billions of pounds wasted every year through fraudulent claims.
Banks Forced to Share Information
In addition, banks will be required to share information about certain claimants' bank accounts to verify their eligibility for benefits. The DWP stressed that suspending driving licences would be a measure of last resort, used only in the most serious cases where individuals have persistently and deliberately evaded repayment of debt.
Focus on Key Benefits
The powers are being focused on Pension Credit, Universal Credit, and Employment and Support Allowance (ESA). This is despite Pension Credit being hugely underclaimed, meaning the government would actually pay out more if all eligible individuals claimed it.
A DWP update stated: "Money owed to DWP can now be recovered from an individual's bank account by issuing a direct deduction order to their bank for repayment. In the most serious cases where individuals have persistently and deliberately evaded repayment of debt, DWP can apply to the court to temporarily disqualify an individual from holding a driving licence where the court is satisfied that the debtor had the means to repay and did not without good reason."
