The Department for Work and Pensions (DWP) will revoke driving licences of some benefit claimants for up to two years, starting in October, under the Public Authorities (Fraud, Error and Recovery) Act 2025. The measure applies to debts of at least £1,000 where recovery by other means is not possible.
How the driving ban works
The DWP can apply to a court for a driving disqualification order against individuals who have had benefits stopped due to fraud and owe money. The court must first determine whether the individual had the means to repay but did not, without reasonable excuse. The court cannot impose a ban if driving is essential, such as for work or caring responsibilities.
To avoid disqualification, individuals can repay the debt in full or agree to an affordable payment arrangement with the DWP. If an immediate disqualification order is revoked within 56 days due to full repayment, the licence can be returned without a fee. Otherwise, individuals must apply to the DVLA to renew their licence, incurring a fee, and the disqualification period may last up to two years. Persistent breaches of suspended orders could lead to total disqualification exceeding two years.
Other powers under the Act
The DWP can now take money directly from bank accounts without a court order. The government says this crackdown could save up to £1.5 billion over five years. The DWP is sending letters to debtors, urging them to repay or arrange a plan before enforcement begins in October 2026.
Work and Pensions Minister for Transformation Andrew Western 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.”
Minister Satvir Kaur said: “Fraud against the public sector and unrecovered debt deny our vital frontline services of the funding they deserve. Under these new powers in the PAFER Act, this Government will deliver on its promise to protect hardworking taxpayers and clamp down on those who try to cheat the system.”
Future measures
Future powers include the Eligibility Verification Measure, allowing the DWP to require limited data from banks to identify incorrect benefit payments. This is part of a government commitment to save £14.6 billion over five years from fraud, error and debt activity, including deploying up to 3,000 additional staff.
