The DWP is set to gain new powers to tackle fraud, including driving bans and direct access to bank accounts for recovery efforts
London: The Department for Work and Pensions (DWP) is stepping up its game against fraud. They’re planning to recover money directly from the bank accounts of fraudsters. This move is being called the biggest crackdown on fraud in a generation.
On Wednesday, the Public Authorities (Fraud, Error and Recovery) Bill will be introduced in Parliament. This new law aims to save taxpayers around £1.5 billion over the next five years.
Once the Bill passes, benefit cheats could face driving bans for up to two years if they don’t pay back what they owe. If someone has welfare debts over £1,000 and ignores requests to pay, the DWP can ask the courts to suspend their driving license.
They’ll also have the power to check bank statements of those who seem to have enough cash but refuse to pay back their debts. However, the DWP assures that they won’t have direct access to anyone’s bank accounts.
Work and Pensions Secretary Liz Kendall emphasized that they’re determined to stop criminals from cheating the system and stealing from honest taxpayers. She mentioned that there will be safeguards in place to ensure these powers are used fairly and responsibly.
To reassure the public, ministers will introduce codes of practice for those using these new powers. They’re also planning to set up oversight and reporting mechanisms to keep track of how these powers are applied.
The Bill will also empower the Public Sector Fraud Authority to tackle fraud that emerged during the Covid era. Shadow Work and Pensions Secretary Helen Whately welcomed these measures but criticized the current leadership for not doing enough to address the welfare budget.
She pointed out that Labour needs to step up and match the £12 billion in savings that the Conservatives have achieved, warning that more tax hikes could be on the horizon for working people.
