The UK government is introducing significant new powers that could affect benefit claimants who owe money to the Department for Work and Pensions (DWP). Below are the latest details.
DWP to take away driving licences from benefit claimants from October
New rules under Andy Burnham are:
Drivers who do not return money owed to the DWP might be banned from driving under sweeping new powers which have come into place.
Under new Labour Party Prime Minister Andy Burnham, stringent new restrictions from October will hit three benefits as the Department for Work and Pensions cancels driving licences in a crackdown.
Drivers who do not repay money they owe to the DWP might be hit with a driving ban under sweeping new powers which have come into action. The DWP will have greater powers from October in what the last Sir Keir Starmer government called “the biggest crackdown on welfare debt in a generation”.
The provisions in the new Act will enable the DWP to reclaim money from those who have ceased claiming benefits but still owe money. These will include all benefit overpayment debts, as well as advances and some overpayments of tax credits. As part of the shake-up the DWP will be given authority to recover money from those who have ceased claiming benefits but still owe outstanding obligations.
Carwow said: “Losing your licence will not be automatic. The measure can only be used where debts are above £1,000, and judges must be convinced the individual has purposefully evaded repayment and has the resources to pay.
The reforms are intended to protect taxpayers and claw back money from those who deliberately do not pay what they owe, said Andrew Western, minister for transformation at the Department for Work and Pensions.
“Hardworking taxpayers deserve a system that cracks down on people who deliberately avoid their debts and that’s exactly what these new powers provide,” he said. “For those who can pay and won’t – we are going further than ever before to recover back funds and crack down on fraud.
Mr Western has remained in his post throughout the Burnham administration, with the Makerfield MP reappointing him in his first reshuffle.
Cabinet Office Minister Satvir Kaur said: “Fraud against the public sector and unrecovered debt means our vital frontline services don’t get the funding they deserve. With these new powers in the PAFER Act, this Government will deliver on its promise to protect hard working taxpayers and crackdown on those who try to cheat the system.”
DWP paperwork says: “The new legislation modernised the framework to allow the Department for Work and Pensions (DWP) to recover debt more efficiently and create greater fairness in debt recovery. These powers are a last resort to recover money owed from an individual’s bank account and, in the most serious cases, DWP can apply to the court to temporarily disqualify them from holding a driving licence.”
Conclusion
The new DWP powers represent a major change in debt recovery enforcement. Individuals with outstanding debts should understand the new rules and seek advice if they believe they may be affected.