The Department for Work and Pensions (DWP) is set to receive new powers that could potentially lead to benefits cheats being banned from driving. This crackdown on welfare fraud aims to hold individuals accountable who repeatedly fail to repay debts to the taxpayer. The proposed measures also include allowing the DWP to access fraudsters’ bank accounts to recover money directly, in what is being called the most significant fraud crackdown in a generation.
The introduction of the Public Authorities (Fraud, Error and Recovery) Bill, intended to become law, is projected to save the taxpayer around £1.5 billion over the next five years, according to estimations made by the DWP. Under the provisions of the Bill, individuals who refuse to reimburse money they owe could face a driving disqualification of up to two years. Courts could suspend driving licences of fraudsters if they owe welfare debts exceeding £1,000 and have disregarded repeated repayment requests.
Moreover, the DWP will be empowered to obtain bank statements from those believed to possess sufficient funds to settle welfare debts but are unwilling to do so. Notably, the DWP has clarified that it will not have direct access to individuals’ bank accounts. Work and Pensions Secretary, Liz Kendall, emphasised the rationale behind these measures, stating that they are designed to deter fraudsters from exploiting the system and exacting money from law-abiding taxpayers.
Kendall highlighted the significance of these actions in combating fraudsters and ensuring accountability, even if it means revoking their driving licences in extreme cases. The DWP reassured the public that stringent safeguards, reporting mechanisms, and independent oversight will be in place to ensure the proportional and safe use of these powers. Ministers intend to introduce codes of practice for the implementation of the new powers and establish monitoring mechanisms to oversee their application.
In a move to tackle Covid-era fraud, the Public Sector Fraud Authority will also receive enhanced powers as part of the Bill. Shadow Work and Pensions Secretary, Helen Whately, expressed support for the measures, characterising them as a continuation of the Conservatives’ efforts in combating fraud. She raised concerns about Labour’s approach to addressing the escalating welfare budget and urged for transparency on their plans to match the £12 billion savings proposed by the Conservatives.
As the Bill progresses through Parliament, the government aims to ensure that the powers granted are used judiciously and effectively. Additional oversight and reporting mechanisms will be implemented to monitor the application of these powers. The measures outlined in the Bill reflect the government’s commitment to eliminating fraud and waste from the welfare system as part of its broader plan for reform and improvement.
These developments mark a significant step towards holding benefit cheats accountable and safeguarding public funds. With the impending legislation giving broader enforcement powers to the DWP, the government is sending a clear message that welfare fraud will not be tolerated, and necessary actions will be taken to protect taxpayer money. The emphasis on accountability, transparency, and proportionate use of powers underscores the government’s commitment to combatting fraud and ensuring the integrity of the welfare system.