New DWP laws could see drivers lose their licences overnight
Thousands of UK drivers could lose their licences overnight thanks to new legislation from the Department for Work and Pensions (DWP). The Fraud, Error, and Debt Bill, introduced to Parliament last week, means people who who fail to repay welfare debts exceeding £1,000 could be banned from driving for two years.
This measure is part of a broader Government strategy to save more than £8.6bn over the next five years by cracking down on welfare fraud and ensuring repayment of outstanding debts. The DWP will be able to apply to courts for individuals to be suspended from driving, provided the debt they owe is £1,000 or over and frequent requests to repay the debt have been ignored.
The DWP will also be able to take money directly from people’s bank accounts under the Bill, which will allow the department to request bank statements to prove debtors have sufficient funds to fairly repay what they owe. However, DWP will not have direct access to people’s bank accounts.
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In a statement, the 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. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.
“People need to have confidence the Government is opening all available doors to tackle fraud and eliminate waste, as we continue the most ambitious programme for government in a generation – with a laser-like focus on outcomes which will make the biggest difference to their lives as part of our Plan for Change.”
The Labour Government said the legislation was being brought forward "after the government inherited a broken welfare system, with fraud and error in the social security system currently costing the taxpayer around £10 billion a year", adding that "since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to the money".
Georgia Gould, Minister in the Cabinet Office, said: "During the pandemic, when people and businesses needed government support the most, some people stole public money for their own personal gain.
"This legislation gives the government tough new powers that can be used to investigate and recover money stolen from the public during Covid and doubles the time we have to bring fraudsters to justice."