Overview
- Under the Public Authorities (Fraud, Error and Recovery) Act 2025 the DWP can now take money directly from a person’s bank account without a court order to recoup outstanding benefit payments.
- Courts may impose driving disqualifications for recoverable debts of at least £1,000 and the Secretary of State can seek further suspended orders even if the remaining debt falls below that threshold.
- The rules include safeguards that bar disqualification where a licence is essential for work or caring duties and allow an initial suspension of any ban while agreed repayments continue.
- The department has begun a letters campaign to thousands of people with debts and says the new enforcement powers will be rolled out in stages from October 2026.
- The measures form part of a wider push to boost recovery through an Eligibility Verification Measure, more staff and data use to meet a government savings target of about £14.6 billion over five years, which could affect people’s income, jobs and access to transport.