The Department for Work and Pensions (DWP) has begun cancelling the driving licences of people who owe them money. In June this year the DWP sent letters to thousands of people across the UK who had outstanding debts, warning them to get in touch and pay up or they could face a ban.
New powers under 2025 Act
After letters were sent earlier this year, the department can now, from October, ask a court to strip persistent offenders of their driving licence if they have yet to pay up. Under the Public Authorities (Fraud, Error and Recovery) Act 2025 the DWP can also now go directly to a person’s bank to get money owed, without needing a court order.
Before the new law came into force, the DWP had few 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 without repercussions. Now courts can impose a driving ban where the debt is at least £1,000.
Exceptions and suspended bans
There are exceptions. You cannot be disqualified from driving if you have an essential need for your licence, for example work that relies on driving, such as working as a courier, or if you have caring responsibilities. Any ban is initially suspended as long as repayment terms are kept to.
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."
