DWP to revoke driving licences for benefits claimants from Thursday

The DWP is cracking down on benefits fraud and debt under the Labour government

Fresh powers enabling the Department for Work and Pensions to remove driving licences from individuals claiming common benefits come into effect on Thursday. The DWP is launching a clampdown under the Labour Party government, armed with strengthened powers.

From October 1 onwards, the DWP can revoke driving licences "as a last resort in the most serious cases where DWP considers the individual has the means to pay but is refusing, or avoiding payment, without reasonable excuse".

This encompasses taking steps to transfer funds to prevent a DDO, or declining to make payments. The DWP may seek a court order to temporarily disqualify someone from holding a driving licence, reports Birmingham Live.

Initially, the court must issue a suspended disqualification order, permitting the person to retain their driving licence while requiring them to make payments as directed by the court. Only if these payment conditions are breached without valid justification can the DWP apply to the court to immediately disqualify the person from driving.

The clampdown arrives amid mounting concerns over the escalating scale of DWP fraud and error, which is hitting the government and taxpayers hard financially.

Getting in touch with the DWP, agreeing to and sticking to an affordable payment arrangement early on would reduce the likelihood of the DWP seeking a court order to temporarily disqualify someone from holding a driving licence, the benefits department states.

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."

The DWP is also introducing powers enabling direct deductions from bank accounts belonging to former claimants who owe money, alongside the ability to seek court orders for driving disqualifications.

These bank account recovery measures specifically target individuals no longer receiving benefits or working in PAYE employment who have neglected to settle their DWP debts. Under these provisions, the DWP can withdraw either one-off lump sums or recurring payments from bank accounts without requiring prior court approval.