Step taken towards DWP raiding bank accounts of benefits cheats
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The Department for Work and Pensions (DWP) has confirmed new laws will give the benefits department the power to recover money directly from bank accounts of benefit cheats. The new measures will form part of the Public Authorities (Fraud, Error & Recovery) Bill, which will be officially introduced in Parliament today. The DWP will be given the power to recover money from those who are not currently in receipt of benefits or in PAYE employment.
The DWP will be able to request bank statements, but it won’t have direct access to people’s bank accounts. The powers will be used as a last resort, and will be used to recover debt from people who have the means to pay, but have refused to do so. Work and Pensions Secretary Liz Kendall has said that legislation will "make sure" that people who "seek to cheat" the system are held accountable.
Benefit cheats could also be banned from driving for up to two years if they repeatedly fail to repay their debt as part of the new Bill. The DWP will be able to apply to the court to suspend fraudsters from driving, if their debt is £1,000 or over and frequent requests to repay the debt have been ignored.
The DWP serious organised crime investigators will also be handed powers to apply to a court for search warrants. The Bill is expected to save the DWP £1.5billion over the next five years, and forms part of wider government plans to save a total of £8.6billion over five years.
Secretary of State for Work and Pensions, Liz Kendall, said: “We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money. This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence.
