Benefit fraudsters may potentially lose their driving privileges if they persistently evade repaying owed funds to the public, under a new Government initiative aimed at combating welfare fraud. The Department for Work and Pensions (DWP) is set to gain the authority to recover money directly from the bank accounts of individuals convicted of fraud, marking a significant crackdown on fraudulent activities.
The forthcoming Public Authorities (Fraud, Error and Recovery) Bill, scheduled for introduction in Parliament, is projected by the DWP to save taxpayers an estimated £1.5 billion over the next five years. Once the legislation is in effect, individuals who fail to settle their welfare debts could face up to a two-year driving ban for non-compliance.
In cases where beneficiaries owe more than £1,000 in welfare debts and repeatedly refuse repayment requests, courts might suspend their driving licenses upon the DWP’s application. Additionally, the department will be empowered to request bank statements from those suspected of having sufficient funds to repay their debts but are unwilling to do so.
Nonetheless, the DWP has affirmed that it will not directly access individuals’ bank accounts.
Liz Kendall, the Work and Pensions Secretary, emphasized the initiative’s aim to prevent criminals from exploiting the system and taking money from law-abiding citizens. Kendall highlighted the importance of imposing stricter penalties on fraudsters who manipulate the system, including the potential revocation of their driving licenses in severe cases. She emphasized the necessity of new safeguards, reporting mechanisms, and independent oversight to ensure the fair and proportionate utilization of these powers.
In a move to address concerns about the implications of the Bill, ministers plan to implement codes of practice for those wielding the new powers, along with enhanced oversight and reporting mechanisms to monitor their implementation.
The Bill also seeks to strengthen the Public Sector Fraud Authority to combat fraud arising from the Covid era. Shadow Work and Pensions Secretary, Helen Whately, expressed support for the measures, characterizing them as a continuation of the Conservative party’s previous efforts in government.
However, Whately criticized Labour leader Keir Starmer, questioning his ability to take a tough stance on fraud due to his appointment of a convicted fraudster to the cabinet. She urged the Labour party to do more to address the rising welfare budget and to explain why they have not matched the £12 billion in savings proposed by the Conservatives, hinting at potential future tax hikes under Rachel Reeves.
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