The Department for Work and Pensions (DWP) is set to receive sweeping new powers to combat benefit fraud, including the ability to temporarily revoke driving licences from claimants who persistently evade repayment of debt. This measure targets households claiming Universal Credit, Employment and Support Allowance (ESA), and Pension Credit.
New Powers to Claw Back Billions
Under the crackdown, banks will be compelled to share details of certain claimants' accounts to verify entitlement. Where individuals fail to engage or repay what they owe, the DWP can apply to a court for a temporary driving disqualification. Officials describe this as a last resort for serious cases where debtors have deliberately avoided repayment despite having the means.
Privacy Concerns Raised
Campaigners have expressed privacy concerns, arguing the government may be overstepping in its pursuit of fraudsters. The DWP 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... DWP can apply to the court to temporarily disqualify an individual from holding a driving licence."
The move is part of a wider effort to reduce benefit fraud and recover billions lost annually. The DWP hopes the threat of losing driving privileges will compel fraudsters to repay their debts.
