People who fail to repay benefit debts could face a driving ban under new welfare enforcement measures.
These sweeping powers are being introduced as part of a government initiative aiming to recover up to £14.6 billion over the next five years from benefit fraud, error, and outstanding debts.
The Department for Work and Pensions (DWP) has begun contacting thousands of people with unpaid debts, outlining the potential repercussions if they do not settle their accounts.
Under the new regulations, the DWP will gain the authority to directly seize funds from peoples’ bank accounts without requiring a court order.
In more severe instances, where welfare debt exceeds £1,000 and there is no occupational necessity for a vehicle, a person’s driving licence could be revoked through a court order.
While these powers become legally effective on Wednesday, their active implementation will commence in October, providing debtors with an opportunity to clear their outstanding amounts or arrange a payment plan beforehand.
Work and pensions minister Andrew Western 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.”
New powers introduced by the Public Authorities (Fraud, Error and Recovery) Act 2025, dubbed the Pafer Act by the Government, also include data handling requirements for banks, to help the DWP hunt down benefit fraudsters.
The launch comes amid ongoing debate at the heart of Government about how to tackle the ballooning welfare bill.
The Government is believed to have spent £333 billion in 2025/26 on welfare.
More than half of this, £177bn, was on pensions, including £146bn for the state pension.
The remainder was spent on a mixture of working age benefits, children’s welfare, and support for disabled people.
The cost of welfare spending is expected to rise to £400bn by the end of the decade.
Ministers had attempted to grapple with this by making reforms to working age benefits, hoping to return more jobless people into work.
But they faced a backbench Labour rebellion last summer which dampened the plans over fears they would have a negative impact on disabled people.
