DWP £1,000 DEBT Means NO DRIVING LICENCE: The UK government is taking strong action against welfare fraud, with a new bill that could see benefit cheats banned from driving if they refuse to repay stolen taxpayer money. The legislation, being introduced in Parliament, aims to crack down on fraudsters who cost the public £7 billion last year. With new enforcement powers, the government hopes to save billions over the next five years.
Key Takeaways – DWP £1,000 DEBT Means NO DRIVING LICENCE
- Benefit cheats to be stripped of driving licences under new plans in government’s biggest fraud crackdown in a generation
- New Public Authorities (Fraud, Error & Recovery) Bill introduces measures to be tough on criminals and fairer to taxpayers
- The Bill alone is expected to save the Department £1.5 billion over the next five years, and forms part of wider government plans to save a total of £8.6bn over 5 years in the biggest welfare fraud and error budget package in recent history, as part of Plan for Change
Driving Ban for Welfare Fraudsters
Under the proposed law, individuals who defraud the welfare system and refuse to repay their debts could have their driving licenses suspended for up to two years. The Department for Work and Pensions (DWP) will be able to apply for a court order to impose this penalty, provided the debt is at least £1,000 and the person has ignored multiple requests for repayment.
Stronger Investigative Powers for DWP
To enhance fraud detection, DWP investigators will be granted the ability to obtain search warrants. This means they can work alongside police to search premises and seize evidence, such as computers and smartphones, to aid in investigations against organised fraud.
The government expects that these measures will help recover significant sums of money and deter fraudulent activity within the welfare system.
Expected Financial Impact of the Bill
The bill is projected to save the government £1.5 billion over the next five years. This is part of a broader strategy to reduce welfare fraud and error by £8.6 billion. Fraud and mistakes in the system currently cost taxpayers £10 billion a year, and since the COVID-19 pandemic, an estimated £35 billion has been wrongly paid out.
Reforming the Welfare System
This legislation is part of the government’s wider Plan for Change, which aims to reform the health and disability welfare system. The goal is to encourage more people to work while ensuring public funds are used efficiently. Further changes to the health and disability benefits system are expected to be announced soon.
The government stresses that these measures are designed to be fair and proportional. The primary aim is to work out reasonable repayment plans with fraudsters, with penalties like a driving ban being used only as a last resort.
Government’s Stand Against Fraud
Liz Kendall, the Secretary of State for Work and Pensions, stated that the government is determined to stop criminals from exploiting the welfare system. She emphasised that those who repeatedly evade repayment will face tougher consequences, including the potential loss of their driving licences.
The government also plans to introduce safeguards to ensure these powers are used fairly, including independent oversight and reporting mechanisms.
Recovering Money from Fraudsters’ Bank Accounts
In another major move, the DWP will be able to recover debts directly from the bank accounts of individuals who are not on benefits or PAYE employment but refuse to pay their dues. Banks may be required to provide statements proving whether these individuals have the means to repay their debts. However, the DWP will not have direct access to people’s bank accounts.
Enhanced Anti-Fraud Measures and Safeguards
To ensure a fair and responsible approach, the government is introducing several safeguards:
- Staff Training: Officials will be trained to handle new powers appropriately.
- Inspection and Reporting Mechanisms: Regular reviews will ensure fair enforcement.
- Codes of Practice: Guidelines will be developed to regulate the use of these powers.
- Right to Appeal: Those affected will have the opportunity to challenge decisions.
New Measures to Combat COVID-19 Fraud
The bill will also extend the time limit for civil claims against COVID-19 fraudsters from six to twelve years. This will allow authorities more time to investigate and recover money stolen during the pandemic. The Public Sector Fraud Authority (PSFA) will gain additional powers to track down fraudsters and retrieve misused funds.
Georgia Gould, Minister in the Cabinet Office, emphasized that these measures will help recover stolen money and bring fraudsters to justice.
Strengthening Fraud Prevention Across the Public Sector
The new legislation empowers the PSFA to:
- Reduce fraud across public services.
- Improve fraud detection and prevent incorrect payments.
- Recover public funds more efficiently.
- Conduct investigations with new search and seizure powers.
- Implement fraud management strategies for future emergencies.
The PSFA will also test different approaches to tackling fraud to ensure the most effective strategies are adopted.
The UK government is stepping up its efforts to combat welfare fraud with tougher penalties and stronger enforcement powers. By introducing driving bans, increasing investigative powers, and extending fraud claim deadlines, the government aims to protect taxpayer money and improve the integrity of the welfare system.
These measures demonstrate the government’s commitment to tackling fraud, reducing errors, and ensuring that welfare support reaches those who genuinely need it.
Source: https://www.gov.uk/government/news/biggest-fraud-crackdown-in-a-generation
FAQ
What is the new welfare fraud law in the UK?
The new law aims to crack down on welfare fraud by introducing penalties such as driving bans for repeat offenders who refuse to repay stolen taxpayer money.
Who can face a driving ban under this new law?
Individuals who owe £1,000 or more in fraudulently claimed benefits and have ignored multiple requests for repayment may have their driving licences suspended.
Will the government have direct access to bank accounts?
No, the government will not have direct access to people’s bank accounts. However, they can request bank statements to verify if debtors have sufficient funds to repay their fraudulently claimed money.
How much money does the government expect to recover?
The bill is expected to save £1.5 billion over five years and contribute to an £8.6 billion reduction in welfare fraud and errors.
What new powers will the DWP have?
The DWP will be able to apply for search warrants, work with the police to seize evidence, and recover debts from fraudsters who are not on benefits or PAYE employment.
