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.
- 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.