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Government Introduces Driving Bans and Bank Account Reviews to Combat Benefit Fraud

New legislation aims to recover £1.5 billion in welfare fraud over five years through stricter penalties and investigative powers.

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Work and Pensions Secretary Liz Kendall is under pressure to save billions from the welfare bill (Photo: Wiktor Szymanowicz/Future Publishing)

Overview

  • The Public Authorities (Fraud, Error and Recovery) Bill proposes banning benefit fraudsters from driving for up to two years if they owe over £1,000 and refuse to repay.
  • The Department for Work and Pensions (DWP) will gain powers to recover funds directly from bank accounts, though it will not have direct access to accounts.
  • Investigators will be allowed to apply for search warrants to gather evidence, including raiding homes and seizing items like computers and smartphones.
  • The measures include safeguards such as court oversight, independent reporting mechanisms, and affordable repayment plans to ensure proportional use of new powers.
  • The government estimates the bill will save £1.5 billion over five years, targeting fraud that cost taxpayers £8.6 billion in the last financial year.