DWP crackdown could see people banned from driving if welfare debts go unpaid
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New fraud, error and debt bill will also allow money to be recovered direct from bank accounts of people fraudulently claiming benefits. People could be banned from driving if they repeatedly fail to repay money they owe 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 fraudulently claiming benefits. The DWP’s fraud, error and debt bill, which would put the measures into law, is due to be introduced in parliament on Wednesday.
It will help save the taxpayer £1.5bn over the next five years, the DWP estimates. Once the bill is made law, those refusing to repay money they owe the taxpayer could be disqualified from driving for up to two years. Courts could suspend a person’s driving licence after an application by the DWP if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay it back.
The department will also have powers to obtain bank statements from people they believe have sufficient funds to pay back welfare debts, but are refusing to do so. The DWP however 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 to criminals who cheat the system and steal law abiding taxpayers’ money.”.
She added: “This means greater consequences for fraudsters who cheat and evade the system, including, in the most serious cases, removing their driving licence. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.
