Benefits cheats could be banned from driving under new powers granted to the Department for Work and Pensions (DWP).
The DWP, from today, will gain new enforcement powers as it heightens its crackdown on those who owe money after receiving benefits they were not entitled to.
But this power will only be exercised under specific circumstances.
The debt owed to the DWP must be at least £1,000.
Those with an “essential need” for their licence – such as those who work as couriers or carers – will not be banned from driving, the DWP has added.
In what Labour claims is the “biggest crackdown on welfare debt in a generation”, the Government will be able to claw back cash from debtors who were no longer claiming benefits or employed.
Drivers could have their licence stripped under new DWP powers
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The Government has now closed that loophole under the Public Authorities (Fraud, Error and Recovery) Act.
That same act allows the DWP to access limited data held by banks and financial institutions to identify incorrect benefit payments.
Around 1.1 million Britons owe money to the department, according to Government figures.
The Government pointed to a number of high-profile benefit frauds cases as evidence for its crackdown.
LATEST DRIVING LAW CHANGES:
The Department for Work and Pensions has claimed this is part of the ‘biggest crackdown on welfare debt in a generation’
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Cases highlighted include Catherine Wieland, 33, from Goring-by-Sea, who was photographed ziplining in Mexico as she claimed over £23,000 in benefits.
It also named Helen Green, 49, who fraudulently obtained £25,000 in Personal Independence Payment (PIP), claiming she had suffered from severe rheumatoid arthritis – but was seen at her local gym and preparing for 10k runs.
Earlier this year, the DWP launched Operation Mellow to recover £3million from four men who allegedly claimed the sum by hijacking hundreds of IDs to claim Universal Credit and PIP.
Andrew Western, now Employment Minister, previously 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.”
Former Cabinet Office Minister Satvir Kaur said: “Fraud against the public sector and unrecovered debt deny our vital frontline services of the funding they deserve.
“Under these new powers in the PAFER Act, this Government will deliver on its promise to protect hardworking taxpayers and clamp down on those who try to cheat the system.”