WELFARE FRAUD CRACKDOWN: New laws could see persistent benefit cheats banned from driving
Benefit fraudsters who cost taxpayers £7 billion last year could face driving bans under new legislation introduced in Parliament today. The move is part of the Government’s largest fraud crackdown in a generation.
The Department for Work and Pensions (DWP) will have the power to seek court orders to disqualify individuals from driving for up to two years if they repeatedly refuse to repay debts of £1,000 or more. This penalty will be used as a last resort after multiple opportunities for repayment have been ignored.
DWP investigators are also set to gain the authority to apply for search warrants, allowing them to work alongside police to search properties and seize evidence such as computers and smartphones. These measures aim to strengthen the Government’s ability to tackle sophisticated welfare fraud schemes.
The proposed Bill is projected to save the DWP £1.5 billion over the next five years, contributing to the Government’s wider target of saving £8.6 billion through welfare fraud and error reductions. Currently, welfare fraud and errors cost the taxpayer an estimated £10 billion annually. Since the pandemic, a total of £35 billion has been incorrectly paid to ineligible claimants.
In addition to combating fraud, the legislation is part of a broader initiative to reform the welfare system. This includes proposals to overhaul health and disability benefits to better support individuals in work and reduce the overall welfare budget. Further details on these reforms are expected later this year.
The Bill also introduces measures to recover money directly from the bank accounts of individuals not receiving benefits or on PAYE payroll, provided they have the means to repay their debts but refuse to do so. To ensure fairness, the DWP will need to present evidence, such as bank statements, proving the debtor’s ability to repay. The department will not have direct access to personal bank accounts.
Safeguards are included to protect vulnerable individuals, with staff receiving specialised training on the use of new powers. Oversight mechanisms and Codes of Practice will also be implemented to ensure the appropriate application of these measures, alongside the right to appeal decisions.
The legislation extends beyond welfare fraud. The Cabinet Office’s Public Sector Fraud Authority will gain expanded powers, including the ability to double the time limit for pursuing civil claims against Covid-related fraud, from six to twelve years. This will allow investigators to apply new powers retrospectively, enabling them to recover funds and investigate fraud more effectively.
The Government has positioned these measures as a necessary step to protect public funds and improve accountability within the welfare system. It is expected to be a significant milestone in tackling fraud and ensuring fairness for taxpayers.
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.”
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.
“Taken together, these measures show the Government’s commitment to taking a responsible approach to public finances which is required for long-term economic growth, in order to deliver for working people up and down the country.”
