The UK Government is introducing a new bill to combat welfare fraud, empowering the Department for Work and Pensions (DWP) to take stricter measures against benefit cheats. This includes the possibility of suspending driving licenses for up to two years for individuals who refuse to repay outstanding welfare debts.
Benefit cheats in the UK could face a novel consequence for their actions: the loss of their driving license . This new measure, part of a government-wide initiative to curb welfare fraud , is expected to save taxpayers an estimated £1.5 billion over the next five years. The Department for Work and Pensions (DWP) will be empowered to pursue a range of actions against individuals suspected of fraudulent benefit claims.
The Public Authorities (Fraud, Error and Recovery) Bill, set to be introduced in Parliament on Wednesday, will grant the DWP the authority to directly recover funds from fraudsters' bank accounts. This 'biggest fraud crackdown in a generation' aims to deter individuals from exploiting the welfare system. To enforce repayment, courts could suspend the driving licenses of individuals owing more than £1,000 in welfare debts who have ignored repeated requests to settle their obligations. This suspension could last up to two years.The DWP emphasizes that it will not have direct access to individuals' bank accounts but will work with banks to verify financial information. Banks will be provided with a list of individuals receiving benefits and the criteria they must adhere to, including a maximum bank balance of £16,000. Banks will be required to report any individuals exceeding this limit, aiding the DWP in identifying potential fraud cases. To ensure transparency and accountability, ministers plan to implement codes of practice for those using these new powers and introduce new oversight and reporting mechanisms. This Bill is part of the UK Government's broader Plan for Change, seeking to reform the welfare system to better support individuals in entering and maintaining employment. New proposals for reforming health and disability benefits are expected to be announced in the Spring. This legislation also strengthens the Cabinet Office’s Public Sector Fraud Authority's capabilities. A significant change includes doubling the time limit for civil claims against Covid fraud from six to twelve years. This extended timeframe will allow the Covid Corruption Commissioner and the Public Sector Fraud Authority to investigate complex cases more thoroughly and apply their powers retrospectively, including the ability to seize assets and recover funds from Covid fraudsters
Government Welfare Fraud UK Government Department For Work And Pensions Driving License Bill Public Sector Fraud Authority
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