Overview
- The new powers came into force on October 1, 2026 and let the Department for Work and Pensions issue direct deduction orders to banks and access limited bank data under the Public Authorities (Fraud, Error and Recovery) Act.
- In the most serious cases the DWP can ask a court to temporarily disqualify a person from holding a driving licence when the court finds the debtor had the means to repay and did not without good reason.
- Driving disqualification will only be sought for debts of at least £1,000 and the department says exemptions will protect people with an essential need for a licence, such as carers or delivery drivers.
- The government cites about 1.1 million people owing money and high-profile fraud investigations, while critics warn the measures risk hitting vulnerable households and raise privacy and proportionality concerns.
- Ministers say the rules are a targeted recovery tool to protect taxpayers and recover unpaid benefits, and the DWP points to recent operations and fraud cases as part of the rationale for the tightened enforcement.