Minister gives update on new DWP powers to take driving licences away

Minister gives update on new DWP powers to take driving licences away The DWP has been given new powers, including the ability to check bank accounts and take money directly from them A government minister has provided a new update on DWP powers to apply to have the driving licences of benefit claimants who are in debt and refuse to repay removed. The new powers form part of the Public Authorities (Fraud, Error and Recovery) Act 2025, which aims "to enable DWP to more effectively identify, prevent and reduce fraud and error within the social security system and the efficient recovery of debt". The act expanded the DWP's debt recovery powers, which are being introduced gradually. One such power is the ability for the DWP to reclaim money owed directly from a claimant's bank account. DWP powers to take money from bank accounts The DWP explained: "As a last resort, money owed to DWP can now be recovered from an individual's bank account by issuing a Direct Deduction Order (DDO) to their bank for payment after carrying out an affordability assessment." Furthermore, the DWP can also seek to have a claimant's driving licence revoked if they refuse to engage with the process. The DWP said: "In the most serious cases where an individual has failed to repay a debt owed to DWP without reasonable excuse, DWP can apply to the court to temporarily disqualify them from holding a driving licence where the court is satisfied that the debtor had the means to repay and did not without good reason." DWP gives update on driving licence confiscation powers The new powers have been raised in Parliament, following a question put to the DWP by an MP. Andrew Snowden, Conservative MP for Fylde, enquired: "To ask the Secretary of State for Work and Pensions, how many Driving Licence Disqualifications his Department has applied for against debtors refusing to repay funds despite having the means since the passage of the Public Authorities (Fraud, Error and Recovery) Act 2025." Lilian Greenwood, Parliamentary Under-Secretary of State for the Department for Work and Pensions and Labour MP for Nottingham South, responded: "The Public Authorities (Fraud, Error, and Recovery) Act 2025 achieved Royal Assent on Tuesday, December 2, 2025. The Act will help to address the significant challenge of public sector fraud and error, which costs the taxpayer billions of pounds annually. "The different measures contained in the Act are due to come into force across different dates between 2026 and 2029. Whilst the Debt measures contained in the Act commenced in June 2026, the supporting regulations which will further develop the operational framework for the new recovery powers introduced in the act will not come into force until October. As a result, to date, no driving licence disqualifications have yet been issued." Further DWP powers under new act The DWP now has the ability to scrutinise claimants' bank accounts to verify that they have accurately declared their financial circumstances. Known as Eligibility Verification Notices (EVNs), the DWP can instruct banks to cross-reference account holder data against specific eligibility criteria to identify any undisclosed savings or income that may affect benefit entitlement. The Public Sector Fraud Authority, operating within the Cabinet Office, has also been granted sweeping powers — including information notices and search and seizure rights — to investigate fraud across the public sector beyond the scope of tax and social security systems.