The Department for Work and Pensions (DWP) has confirmed that no driving licence disqualifications have yet been issued under new powers introduced by the Public Authorities (Fraud, Error and Recovery) Act 2025.
The act, which received Royal Assent on Tuesday, December 2, 2025, is designed to enable the DWP to more effectively identify, prevent and reduce fraud and error within the social security system, as well as the efficient recovery of debt.
The legislation broadened the DWP's debt recovery powers, which are being brought into force gradually. Among them is the ability to recover money owed directly from a claimant's bank account.
Bank account deductions and driving licence bans
The DWP explained that as a last resort, money owed to the department can now be recovered from an individual's bank account by issuing a Direct Deduction Order (DDO) to their bank for payment, after carrying out an affordability assessment.
In addition, the DWP can apply for the driving licence of a claimant who refuses to engage to be taken away. The department said: "In the most serious cases where an individual has failed to repay a debt owed to DWP without reasonable excuse, DWP can apply to the court to temporarily disqualify them from holding a driving licence where the court is satisfied that the debtor had the means to repay and did not without good reason."
Minister's update in Parliament
The new powers were raised in Parliament through a question from Andrew Snowden, Conservative MP for Fylde, who asked how many Driving Licence Disqualifications the department had applied for against debtors refusing to repay funds despite having the means since the passage of the act.
Lilian Greenwood, Parliamentary Under-Secretary of State for the Department for Work and Pensions and Labour MP for Nottingham South, replied: "The Public Authorities (Fraud, Error, and Recovery) Act 2025 achieved Royal Assent on Tuesday, December 2, 2025. The Act will help to address the significant challenge of public sector fraud and error, which costs the taxpayer billions of pounds annually.
"The different measures contained in the Act are due to come into force across different dates between 2026 and 2029. Whilst the Debt measures contained in the Act commenced in June 2026, the supporting regulations which will further develop the operational framework for the new recovery powers introduced in the act will not come into force until October. As a result, to date, no driving licence disqualifications have yet been issued."
Further DWP powers under the act
The DWP can now also examine the bank accounts of claimants to check that they have disclosed their financial situation truthfully. Known as Eligibility Verification Notices (EVNs), the DWP can compel banks to scan account holder data against specific eligibility indicators to detect undeclared savings or income affecting benefit entitlement.
The Public Sector Fraud Authority within the Cabinet Office has also been given broad powers — including information notices and search and seizure rights — to investigate public sector fraud outside of the tax and social security systems.
