The DWP’s crackdown could lead to people being banned from driving if social security debts remain unpaid | Advantages

People could be banned from driving if they repeatedly fail to pay back money owed under a new government crackdown on welfare fraud.

The Department for Work and Pensions (DWP) will also be able to recover money directly from the bank accounts of people who fraudulently claim benefits.

The DWP’s Fraud, Mistakes and Debt Bill, which would put the measures into law, will be introduced into Parliament on Wednesday.

It will save taxpayers £1.5 billion over the next five years, the DWP estimates.

Once the bill comes into effect, those who refuse to pay back the money they owe taxpayers could be banned from driving for up to two years.

Courts can revoke a person’s driving license following an application from the DWP if they have benefits debts of more than £1,000 and have ignored repeated requests to pay them back.

The ministry will also have the power to request bank statements from people they believe have enough money to repay social debts but refuse to do so. However, the DWP insists it will not have direct access to people’s bank accounts.

Liz Kendall, the Work and Pensions Secretary, said: “We are turning off the tap on criminals who cheat the system and steal law-abiding taxpayers’ money.”

She added: “This means greater consequences for fraudsters who cheat and circumvent the system, including, in the most serious cases, having their driving license revoked. Backed by new and important safeguards, including reporting mechanisms and independent oversight, to ensure powers are used proportionately and safely.

“People must have confidence [that] the government is opening all available doors to tackle fraud and eliminate waste as we continue the most ambitious program for government in a generation – with a laser-like focus on results that will make the biggest difference to their lives as part of our Plan for Change.”

In an effort to provide certainty on the bill, ministers will put forward codes of practice for those who will use the new powers, as well as plans to introduce new oversight and reporting mechanisms to monitor how the measures are used.

Elsewhere in the bill, the Public Sector Fraud Authority will be given more powers to tackle Covid-era fraud.

Helen Whately, the shadow work and pensions secretary, said the measures were a “continuation” of the Conservatives’ work while in power.

She added: “But because he knowingly appointed a convicted fraudster to his Cabinet, Keir Starmer cannot be trusted to crack down on fraud.

“Labor must do more to tackle the rising welfare budget, and explain why they have not yet matched our £12 billion in savings – raising the prospect of Rachel Reeves returning later this year with another tax attack on working people .”