The Department for Work and Pensions (DWP) has been granted sweeping new enforcement powers after landmark anti-fraud legislation received Royal Assent. The Public Authorities (Fraud, Error, and Recovery) Act paves the way for a significant crackdown on fraudulent and erroneous benefit claims.
Three Benefits in the Immediate Spotlight
The new legislation is specifically designed to target the three benefits with the highest recorded rates of fraud and error. These are Universal Credit, Employment and Support Allowance (ESA), and Pension Credit. The government's focus will initially be concentrated on these areas as it rolls out its enhanced investigatory toolkit.
What the New DWP Powers Entail
The Act grants the DWP unprecedented authority to scrutinise claimants' financial activity. The department will now have the power to check bank accounts for signs of suspicious transactions that may indicate fraud or error. This measure is intended to act as both a deterrent and a more effective means of detection.
Furthermore, the legislation introduces powerful new recovery tools. Once fully enacted, the DWP will be able to recover money directly from the bank accounts of individuals found to have fraudulently claimed benefits, streamlining the process of recouping taxpayer funds.
Stiff Penalties for Non-Repayment
Perhaps the most striking new penalty is the ability to suspend driving licences. Courts will be able to impose this sanction following a DWP application against individuals who owe more than £1,000 in welfare debts and have persistently ignored requests for repayment. Disqualification could last for up to two years.
Andrew Western, the Labour Minister for Transformation, stated the powers will enable the government to "better identify, prevent, and deter fraud and error" while ensuring the recovery of taxpayer debt. He emphasised that delivering a trustworthy benefits system is essential for both claimants and the public.
Former DWP head Liz Kendall noted the tough powers are balanced by new safeguards, including independent oversight and reporting, to ensure their use remains proportionate and safe.
