Strict new rules will see the DVLA cancel driving licences from October as part of tough new measures to clamp down on benefit claimants. The measures give Department for Work and Pensions (DWP) officials the power to check bank accounts, make direct withdrawals and, in a bid to make people pay back what they owe, take away driving licences.
The powers will be used for people claiming Universal Credit, Employment and Support Allowance (ESA) and Pension Credit. Benefit fraud and debt costs the nation huge sums each year, and the crackdown is intended to tackle the growing issue.
Two-month warning for benefit claimants
A two-month warning has been issued by the DWP to anyone with benefit debt. Direct action will be taken if they fail to make contact with the department.
Direct deduction orders and court action
The DWP said: "Money owed to DWP can now be recovered from an individual’s bank account by issuing a direct deduction order to their bank for repayment."
"In the most serious cases where individuals have persistently and deliberately evaded repayment of debt, DWP can apply to the court to temporarily disqualify an individual 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: loophole closed
Officials said in an update: "Previously, 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. That loophole is now closed."
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."
"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."
