The Department for Work and Pensions (DWP) has been urged to strengthen safeguards around new powers allowing it to recover benefit debts directly from bank accounts and seek driving disqualifications in certain cases.
The Social Security Advisory Committee (SSAC), which scrutinises social security legislation, has raised concerns about whether the department can reliably distinguish between people deliberately refusing to repay debts and those who cannot afford to pay or are unable to respond.
New debt recovery powers under scrutiny
The warning follows its examination of the Social Security (Further Methods of Recovery) Regulations 2026, which provide the operational framework for debt recovery powers introduced under the Public Authorities (Fraud, Error and Recovery) Act 2025.
Under the arrangements, the DWP will be able to use Direct Deduction Orders to recover money from bank accounts where existing recovery methods through benefits or Pay As You Earn (PAYE) earnings cannot be used.
In more serious cases, where recovery from bank accounts has proved unsuccessful, the department will be able to apply to a magistrates' court for an individual to be disqualified from driving.
However, the powers are intended to be used as a last resort after attempts to contact individuals and arrange voluntary repayment have failed.
Concerns over people unable to repay DWP debts
The SSAC has called for a staged introduction, with regular reviews to assess whether safeguards are working and whether people experiencing financial hardship or other vulnerabilities are being adequately protected.
In a letter to DWP Minister Baroness Sherlock, committee chair Dr Stephen Brien questioned whether the department had sufficient information about the people likely to be affected by the new recovery measures.
The committee acknowledged the Government's objective of recovering debts from people who are able to repay but have failed to do so. However, it warned that some individuals may be unable to engage with the DWP because of poor mental health, unstable housing, communication difficulties or financial hardship.
The committee stated: "Throughout our scrutiny, a recurring theme was how the Department will distinguish between those who cannot engage and those who will not engage, and between those who cannot pay and those who will not pay."
It added that the success of the proposed arrangements would depend heavily on making these distinctions accurately, particularly where information about an individual's circumstances was incomplete.
The committee also reported that it had not seen the data underpinning the department's understanding that a significant group of people could afford to repay debts but were choosing not to do so.
Bank account deductions and affordability checks
Direct Deduction Orders would allow the DWP to recover money owed from bank accounts when repayment cannot be secured through existing benefit or earnings deductions.
The committee recognised that affordability assessments form a central safeguard, intended to ensure that debt recovery does not leave people unable to meet essential living expenses. However, it warned that bank statements alone may not provide a complete picture of someone's financial circumstances.
Additional expenses such as disability-related costs, childcare, health needs, caring responsibilities and other debts may not always be apparent. The committee cautioned that deductions could appear affordable based on the information available to the DWP but cause hardship in practice.
It has requested further assurances about how decisions will be made where financial information is incomplete and how deductions will be reviewed if someone's circumstances change.
Concerns for people receiving benefits in Scotland
The committee specifically highlighted the position of people in Scotland receiving devolved benefits administered by Social Security Scotland. These include Carer Support Payment and related support for carers.
It warned that the DWP may not always have a complete picture of the financial circumstances of people receiving these payments or those with caring responsibilities. This could affect how the department assesses someone's ability to repay a debt or respond to requests for information.
The committee has asked the DWP to demonstrate how its approach will account for people with low or no income, carers, recipients of devolved benefits and others whose circumstances may not be fully reflected in departmental records.
Driving disqualification as a last resort
The regulations also provide for applications to the magistrates' court to disqualify individuals from driving where other recovery measures have failed.
The SSAC was informed that this power would be reserved for a small number of cases involving persistent non-engagement or deliberate avoidance. Officials explained that applications would be considered individually rather than through a bulk process.
People would have an opportunity to be heard before an order was made, and courts would retain discretion over whether disqualification was appropriate. The department would also need to consider whether someone had failed to repay without reasonable excuse.
The committee nevertheless called for clear evidence thresholds before cases are escalated, particularly where vulnerability, communication difficulties or financial hardship may explain a person's failure to respond.
Calls for safeguards before wider rollout
The SSAC has recommended introducing the powers gradually through a structured test-and-learn approach.
It wants the DWP to monitor whether affordability assessments are accurate, whether vulnerable individuals are being identified and whether enforcement action is reaching the people the policy is intended to target.
The committee warned that successful debt recovery alone would not demonstrate that safeguards were working.
Dr Brien wrote: "Without such assurance, there remains a risk that powers intended for a relatively narrow group of deliberate non-payers may in practice affect a wider group whose circumstances are less well understood, and may have an adverse safeguarding impact."
The committee confirmed that it would not refer the regulations for formal further scrutiny, but requested written assurances and continued engagement as the measures are introduced.
The new powers are intended to address cases where existing debt recovery arrangements are ineffective, rather than automatically applying to everyone who owes money to the DWP.
The committee's central concern is ensuring that people who cannot pay or cannot engage are not treated in the same way as those deliberately avoiding repayment.
