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Wednesday, Mar 12, 2025

UK Government Proposes Strict Measures to Combat Welfare Fraud

UK Government Proposes Strict Measures to Combat Welfare Fraud

DWP Initiative Could Lead to Driving Bans for Unpaid Welfare Debts
The UK government is set to introduce a series of measures aimed at reducing welfare fraud, including the potential suspension of driving licenses for those who consistently fail to repay welfare debts.

The Department for Work and Pensions (DWP) plans to present a fraud, error, and debt bill to Parliament, expected on Wednesday, which will seek to implement these measures into law.

According to the DWP, the proposed legislation aims to recover an estimated £1.5 billion for taxpayers over the next five years.

Individuals who owe more than £1,000 in welfare debts and who have ignored requests for repayment could face a driving ban of up to two years.

The suspension of a driving license would require court approval following an application by the DWP.

Additionally, the DWP will gain the ability to obtain bank statements from individuals deemed to have the financial means to settle their debts but who refuse to do so.

However, officials have clarified that they will not have direct access to personal bank accounts.

The work and pensions secretary, Liz Kendall, emphasized the government's commitment to curbing fraudulent activity and protecting taxpayer money.

She stated that more stringent consequences, including driving license suspensions, would be applied in serious cases.

Kendall highlighted the inclusion of safeguards, such as independent oversight, to ensure the responsible use of these new powers.

As part of the legislation, the government plans to develop codes of practice and introduce oversight mechanisms to ensure the proposed measures are used proportionately.

Furthermore, the Public Sector Fraud Authority will receive enhanced powers to address fraud that occurred during the Covid-19 pandemic.

The initiative, described by the government as an effort to enhance efficiency and accountability in public spending, is not without political contention.

Shadow work and pensions secretary Helen Whately critiqued the proposed measures, linking them to broader policy challenges faced by the opposition.

The bill's introduction forms part of a larger agenda aimed at reforming various governmental functions, as the government seeks to reassure the public of its ongoing efforts to optimize public resource management.
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