Work and Pensions Secretary Liz Kendall said the DWP would crack down on benefits cheats (Image: Wiktor Szymanowicz/Future Publis)
Benefit cheats could be banned from driving if they repeatedly fail to pay back cash to the taxpayer under a new government drive to curb welfare fraud.
The Department for Work and Pensions (DWP) will also be able to recover the money directly from fraudsters’ bank accounts, which is what has been dubbed the biggest fraud crackdown in a generation.
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"We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money,” said Work and Pensions Secretary Liz Kendall.
She added: “This means greater consequences for fraudsters who cheat and evade the system, including as a last resort 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.
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“People need to have confidence 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.”
The Public Authorities (Fraud, Error and Recovery) Bill will be introduced in Parliament on Wednesday.
It will help save the taxpayer ￡1.5billion over the next five years, the DWP estimates.
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Once the Bill is made law, benefit cheats could be disqualified from driving for up to two years if they refuse to repay money they owe.
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Courts could suspend fraudsters’ driving licences following 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 would also have the power to obtain bank statements from people they believe have enough cash to pay back welfare debts but are refusing to do so.
The DWP, however, insists it would not have direct access to people’s bank accounts.