People could be banned from driving if they repeatedly fail to repay money they owe under a new government crackdown on welfare fraud.
The Department for Work and Pensions (DWP) will also be able to recover money directly from the bank accounts of people fraudulently claiming benefits.
The DWP’s fraud, error and debt bill, which would put the measures into law, is due to be introduced in parliament on Wednesday.
It will help save the taxpayer £1.5bn over the next five years, the DWP estimates.
Once the bill is made law, those refusing to repay money they owe the taxpayer could be disqualified from driving for up to two years.
Courts could suspend a person’s driving licence after an application by the DWP if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay it back.
The department will also have powers to obtain bank statements from people they believe have sufficient funds to pay back welfare debts, but are refusing to do so. The DWP however insists it will not have direct access to people’s bank accounts.
Liz Kendall, the work and pensions secretary, said: “We are turning off the tap to criminals who cheat the system and steal law abiding taxpayers’ money.”
She added: “This means greater consequences for fraudsters who cheat and evade the system, including, in the most serious cases, removing their driving licence. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely.
“People need to have confidence [that] the government is opening all available doors to tackle fraud and eliminate waste, as we continue the most ambitious programme for government in a generation – with a laser-like focus on outcomes which will make the biggest difference to their lives as part of our Plan for Change.”
In an attempt to provide assurance about the bill, ministers will bring forward codes of practice for those who will use the new powers, as well as plans to introduce new oversight and reporting mechanisms to monitor how the measures are used.
Elsewhere in the bill, the Public Sector Fraud Authority will be given more powers to tackle Covid-era fraud.
Helen Whately, the shadow work and pensions secretary, said the measures were a “continuation” of the Conservatives’ work in power.
She added: “But having knowingly appointed a convicted fraudster to his cabinet, Keir Starmer cannot be trusted to get tough on fraud.
“Labour must do more to tackle the spiralling welfare budget, and explain why they are yet to match our £12bn in savings – raising the prospect that Rachel Reeves will be back again later this year with another tax raid on working people.”
