The DWP say they are ‘clawing back cash’ and ‘cracking down on fraud’
People owing money to the DWP could get banned from driving (Image: Geely)
People owing money to the Department for Work and Pensions (DWP) could soon be banned from driving as well as have money taken directly from their bank accounts. The DWP is writing to thousands of people with outstanding debts, warning them to get in touch and pay up or face the consequences.
Under the Public Authorities (Fraud, Error and Recovery) Act 2025 the DWP can now go directly to a person’s bank to get money owed, without needing a court order. In the most serious cases, the department can ask a court to strip persistent offenders of their driving licence.
Letters will be sent out regularly from this month notifying those refusing to pay debts that the enforcement of the powers will be gradually rolled out from October. For the biggest stories in Wales first sign up to our daily newsletter here
Before the new law the DWP had limited options to pursue people who were no longer claiming benefits or in PAYE employment, meaning some who could afford to repay were simply choosing not to.
Now courts can impose a driving ban where the debt is at least £1,000.
No one can be disqualified if they have an essential need for their licence, for example work that relies on driving, such as a courier or caring responsibilities. Any ban is initially suspended as long as repayment terms are kept to.
The new changes are a part of the UK Government’s commitment to savings of £14.6 billion over the next five years from fraud, error and debt activity.
Andrew Western, Work and Pensions minister for transformation, said: “Hardworking taxpayers deserve a system that pursues those who deliberately dodge their debts, and that is exactly what these new powers deliver.
“To anyone with an outstanding debt – our door is open and DWP will always work with you to find an affordable way to repay. But for those who can pay and won’t – we’re going further than ever before to claw back cash and crack down on fraud.”
