DWP tough new powers as former claimants could get letters from this week

DWP tough new powers as former claimants could get letters from this week The new rules are meant to create tougher consequences, the Department for Work and Pensions says The Department for Work and Pensions now has new powers to enforce consequences for people who have stopped claiming benefits but are still indebted to the department. Going forward, the DWP will be able to claw back the cash directly from bank accounts and in serious cases can ask a court to strip offenders of their driving licence. The new rules are meant to crack down on fraudsters and debtors who “refuse to pay” back their debts to the DWP. People who could be affected by these rules should start receiving letters this week warning them to “get in touch and pay up”. Work and Pensions Minister for Transformation Andrew Western said: “Hardworking taxpayers deserve a system that pursues those who deliberately dodge their debts, and that is exactly what these new powers deliver. To anyone with an outstanding debt - our door is open and DWP will always work with you to find an affordable way to repay. “But for those who can pay and won’t - we’re going further than ever before to claw back cash and crack down on fraud.” The DWP’s full scope of new powers will be gradually rolled out from October, giving people who owe the Department just four months to pay back what they owe or arrange an affordable repayment plan before this deadline. Anyone who receives these letters are urged to act as soon as possible, with official guidance stating that people can avoid having the full force of these new powers by simply getting in touch with the DWP. The department also notes that staff are able to signpost people to free debt support services where necessary. People who owe debts to the DWP and currently receive benefits will usually pay back these debts through deductions on their future payments. However, when people are still paying back these debts and stop receiving benefits, it became harder for the DWP to claw back the money. The driving ban can only be imposed on people who owe the DWP at least £1,000 and if they don’t have an essential need for their licence - for example, if they need their car to work as a courier. People who are banned will initially only have their licence suspended as long as repayment terms are kept to. Cabinet Office Minister Satvir Kaur said: “Fraud against the public sector and unrecovered debt deny our vital frontline services of the funding they deserve. “Under these new powers in the PAFER Act, this Government will deliver on its promise to protect hardworking taxpayers and clamp down on those who try to cheat the system.”