Motorists could soon lose their driving licences under new plans from the Department for Work and Pensions (DWP) to recover debt more efficiently.
New laws have been outlined by the DWP, allowing the department to create greater fairness in debt recovery.
It states that the measures are used as a last resort to ensure the DWP can recover money owed from an individual’s bank account.
In the most serious cases, the DWP can apply to the court to temporarily disqualify them from holding a driving licence.
A Code of Practice outlines how the new powers can be used, allowing the DWP to recover certain social security debts from those no longer on DWP benefits and not in suitable Pay As You Earn (PAYE) employment.
This is done through a Direct Deduction Order (DDO), which is stated in paragraph 1 of Schedule 3ZA to the Social Security Administration Act 1992.
Driving licences can be stripped where an individual has failed to pay without reasonable excuse, is no longer entitled to, or is in receipt of DWP benefits.
However, this measure can only be considered by the DWP if the outstanding debt balance is a minimum of £1,000 and it is not reasonably possible to recover the debt by any other means.
The DWP has gained new powers to strip motorists of their driving licences
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The DWP cannot use the disqualification from driving power for individuals who are entitled to and in receipt of a DWP benefit.
Anyone who faces losing their licence will be notified in writing of the process, as well as details of the court hearing.
If the licence route is to be taken, the court must determine whether the individual had the means to repay the debt, but failed to do so without a reasonable excuse.
The court is also restricted from moving forward with these plans if it considers that the individual has an essential need to drive.
Drivers may be able to keep their physical licence under the new DWP rules
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PAThis includes whether the licence is essential to earn a living, which will need to be stated clearly in court.
Any order made to disqualify a motorist from driving must end as soon as the full amount owed to the DWP has been repaid.
People who have not paid their debt to the DWP may be required to hand over their physical driving licence documents after an immediate disqualification order.
Even if the physical licence is not initially provided, DVLA records will be immediately updated to show the disqualification.
Drivers who have had their licence disqualified could have their licence returned or replaced for free
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GETTYIf an immediate disqualification order ends or is revoked within 56 days of being made because the debt has been paid, they may be entitled to have their licence returned or replaced by the DVLA without paying.
The Code of Practice states: “After an immediate disqualification order ends, if the period of disqualification lasted longer than 56 days, the individual will need to apply to DVLA to renew their driving licence and will incur a fee to do so.
“The disqualification period under an immediate disqualification order may last no longer than two years.
“In some circumstances, where the individual persistently breaches the suspended order by failing to pay without reasonable excuse, more than one immediate disqualification order may be given.”