New Government Drive to Curb Welfare Fraud
The Department for Work and Pensions (DWP) is set to introduce a new Bill that would allow them to recover money directly from fraudsters’ bank accounts, in a bid to tackle welfare fraud and save the taxpayer £1.5 billion over the next five years.
New Powers to Tackle Fraud
Under the Public Authorities (Fraud, Error and Recovery) Bill, benefit cheats could be disqualified from driving for up to two years if they refuse to repay money they owe. Courts could also suspend fraudsters’ driving licences following application by the DWP, if they owe welfare debts of more than £1,000 and have ignored repeated requests to pay it back.
New Oversight and Reporting Mechanisms
The DWP will also have powers to get bank statements from people they believe have enough cash to pay back welfare debts, but are refusing to do so. However, the department insists it will not have direct access to people’s bank accounts.
Minister’s Assurance
Work and Pensions Secretary Liz Kendall said: "We are turning off the tap to criminals who cheat the system and steal law-abiding taxpayers’ money. This means greater consequences for fraudsters who cheat and evade the system, including as a last resort in the most serious cases removing their driving licence. Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are used proportionately and safely."
Plan for Change
The DWP aims to provide assurance about the Bill by bringing forward codes of practice for those who will use the new powers. The department also plans to introduce new oversight and reporting mechanisms to monitor how the powers are used.
Tackling Covid-Era Fraud
Elsewhere in the Bill, the Public Sector Fraud Authority will be given more powers to tackle Covid-era fraud.
Labour’s Response
Helen Whately, the shadow work and pensions secretary, welcomed the measures, saying they were a "continuation" of the Conservatives’ work in power. However, she also claimed that having appointed a convicted fraudster to his cabinet, Keir Starmer cannot be trusted to get tough on fraud.
Frequently Asked Questions
Q: What are the new powers aimed at?
A: The new powers are aimed at tackling welfare fraud and recovering money owed to the taxpayer.
Q: How much will the new powers save the taxpayer?
A: The new powers are expected to save the taxpayer £1.5 billion over the next five years.
Q: Will the DWP have direct access to people’s bank accounts?
A: No, the DWP will not have direct access to people’s bank accounts.
Q: What is the aim of the Public Authorities (Fraud, Error and Recovery) Bill?
A: The aim of the Bill is to tackle welfare fraud and save the taxpayer money by giving the DWP new powers to recover money owed to them.
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